North’s private sector shows sharpest rise for nine years

The North’s private sector has posted its sharpest increase in new orders for more than nine years, according to figures just released.

The latest Ulster Bank Purchasing Managers' Index, published this morning, points to the jump in economic activity which it says was the largest since March 2004 and follows five successive months of growth.

"The Northern Ireland economic recovery gathered momentum in November as growth of both activity and new orders accelerated to multiyear highs," the report said. "This contributed to a survey record accumulation of outstanding business, although the rate of job creation eased."

It also warned that cost inflation picked up over the past month and remains faster than the UK economy average.

The service sector posted the sharpest expansion in activity, with growth also quickening in the manufacturing and construction sectors.

The report adds: “Where activity rose, this was often attributed to a general uplift in the UK economy and subsequent growth of new orders. The rate of expansion in new business in Northern Ireland accelerated sharply over the month and was the fastest since July 2004. New export orders also rose at a quicker pace during November.

Richard Ramsey, Ulster Bank's chief economist in Northern Ireland, said there had been a "marked acceleration" in business activity in November and that there were no signs that the pick-up in activity is set to fade.

“Looking at the growth in new orders suggests that this momentum is set to continue into 2014,” he said.

“Last month, local businesses reported the sharpest increase in new orders in almost nine and a half years with this improvement evident across firms within the manufacturing, construction and services sectors.

“The latter posted the sharpest increase in new orders of all sectors with November representing the service industry’s best month since the credit crunch officially began in August 2007.”