Growth in business activity here was more subdued than expected in April with stagnation for the construction sector, according to a major survey today.
The Ulster Bank Northern Ireland Purchasing Managers Index (PMI) for April showed a subtle acceleration in private sector business activity growth.
And although orders continued to increase for companies here, it was just at a slightly faster rate than March. That month had witnessed a 17-month low in business activity, as a result of disruption caused by extreme weather.
In April, business activity in the services sector – which covers everything from estate agents to restaurants – grew at the fastest rate, but was still below pre-downturn levels. And the report showed that employment rose as increased workloads prompted firms to recruit new staff.
Manufacturing was also “holding up well” during the month – but activity in the construction sector was “close to stagnation” and order books fell for the second month in a row. The retail sector also suffered.
Ulster Bank chief economist Richard Ramsey said: “The March PMI saw a slowdown in growth resulting from factors including the Beast from East weather episode and it was anticipated that there would be a rebound in April.
“The latest report shows that this has indeed come to pass. However, it has been a more muted one than expected in NI and the UK as a whole, unlike the Republic which has rebounded with vigour.
