• Sharpest rise in new orders of all UK areas
• Rate of job creation softens
• Wages and transportation prices push up input costs

The Northern Ireland private sector ended the second quarter of the year comfortably inside growth territory. New orders increased at the fastest pace since February 2022, feeding through to a marked rise in business activity. The rate of job creation was only modest, however, amid some reports of difficulties sourcing new staff.

The headline seasonally adjusted Business Activity Index posted 55.8 in June, down from May's reading of 56.4 but still signalling a marked monthly increase in output during the month. Business activity has now risen in each of the past seven months, with only London seeing a faster expansion in June.

Particularly sharp increases in activity were seen across the manufacturing and service sectors, while growth was also recorded in construction and retail.

Rising output was mainly a response to higher new orders, which increased at the fastest pace since February 2022.

Growth of new orders and the prospect of further improvements in the months ahead supported job creation in June. Although new business increased rapidly, the pace of job creation eased to a four-month low amid some reports of difficulties finding suitable staff. As a result, backlogs of work increased slightly.

Rises in wages and transportation costs resulted in a further marked increase in input prices in June, with the pace of inflation ticking higher. In turn, companies also increased their output prices at a faster pace.

Northern Ireland firms remained confident that output will expand over the coming year, with the level of sentiment unchanged from that seen in May.

Please see the regional report in full:

Ulster Bank Northern Ireland Growth Tracker (PDF, 803KB)