Business costs 'highest since November' in the North

Business costs in the North are at their highest since last November.

An Ulster Bank survey blamed rising oil and raw material prices for July’s hike, the fourth consecutive month prices have increased.

However, new order growth and rising employment has helped soften the blow with the sharpest rises in the construction and service industries.

Bank economist Richard Ramsey said: “Companies’ pricing power remained robust in July, as indicated by the joint-highest output charge inflation in 2007 so far.

“The strongest rises in charges were at retail and construction firms.”

Some experts have been warning of a downturn in the housing market which has seen prices slipping in some areas.

Despite this, Mr Ramsey added: “A recurrent theme in the last number of surveys has been the rapid expansion of the services and construction sectors with July proving to be no exception.

“Both sectors saw output rise at an increasing rate with the construction industry recording the highest rate of growth in the survey’s history.”

He said job creation was driven by efforts to meet higher levels of new orders and reflecting business expansion plans.

Some members said so much business had been received that they couldn’t complete existing contracts.