A recent Ulster Bank survey reveals a positive upturn in Northern Ireland’s private sector in December, marking the end of a six-month contraction.
Despite growth in retail, services, and manufacturing, the outlook for 2024 is subdued, with weak new demand and ongoing challenges in the construction sector.
The survey suggests potential job cuts in manufacturing as firms adjust to reduced external demand, signalling caution in the region’s economic recovery.
1. December Growth Signals Rebound
Northern Ireland’s private sector experiences growth in December, ending a six-month period of contraction, according to the Ulster Bank survey.
2. Positive Performance Across Sectors
Retail, services, and manufacturing sectors contribute to the overall uptick in business activity, providing a multifaceted boost to the region’s economy.
3. Construction Sector Struggles
Despite overall growth, the construction sector continues to contract, presenting a persistent challenge to Northern Ireland’s economic landscape.
4. Caution for 2024
The survey indicates a cautious outlook for 2024, with weak new demand and shrinking order books for the seventh consecutive month, posing challenges for sustained growth.
5. Labour Market Shifts
While Northern Ireland’s labour market remained robust in 2023, signs emerged of job cuts in the manufacturing sector in response to reduced external demand.
6. Manufacturing Job Reductions
Manufacturers reduce their workforce for the second consecutive month, with December seeing the sharpest decline in almost three years, reflecting adjustments to changing business conditions.
7. Economic Expectations
Analysts anticipate relatively flat economic performance in 2024 as households and businesses grapple with higher price levels and the impact of rising interest rates.
