NI private sector output continues to grow

March data from the latest Ulster Bank Purchasing Managers’ Index Report for Northern Ireland showed growth of private sector output extending into a 24th consecutive month.

Volumes of incoming new business also continued to rise.

In both cases, however, growth continued to slow from the highs of mid-2004, as underlying domestic demand faltered and Northern Ireland firms faced increased competition from overseas rivals for new work.

At 51.9 in March, the headline Business Activity Index dropped to its lowest level since May 2003 as private sector growth lost further momentum. Latest data also pointed to the broadest differential between Northern Ireland and UK output growth in the two-and-a-half years that NI data have been collected.

The Northern Ireland survey forms part of a series of regional surveys published by The Royal Bank of Scotland Group and NTC Research, and is derived from the highly regarded national PMI surveys produced by NTC for the Chartered Institute of Purchasing and Supply.

Commenting on the latest survey findings, Pat McArdle, chief economist, Ulster Bank, said: "PMI surveys, the earliest indicators of economic performance, show that the US and the UK continued to grow at satisfactory, albeit reduced, rates in the first quarter, while the Republic and the eurozone were largely unchanged from Q4 when they posted somewhat disappointing growth performances.”