North’s economy inches back to growth

A fourth consecutive monthly increase in manufacturing output helped drag the North’s private sector economy back into growth mode in May, but public spending cuts, euro weakness against sterling, and tanking retail and construction sectors are tempering any long-term optimism.

The latest edition of Ulster Bank’s Northern Ireland PMI (purchasing managers’ index) shows a reading of 52.7 points for May — comfortably above the neutral 50 point mark which separates contraction from growth and a recovery from April’s 49.1 posting.

However, while May saw the North’s economy post its fastest rate of growth in seven months (in business activity and new orders, while staffing also increased strongly) challenges remain, says Ulster Bank’s chief economist for the North Richard Ramsey.