Consumer confidence and future investment plans could be hit by the latest bout of political instability in the North retail chiefs warned today on Monday as latest figures showed another drop in the number of people out spending cash in local shops and stores last month.
According to the Northern Ireland Retail Consortium (NIRC) shopper footfall numbers were 2.4 per cent lower in August than a year ago.
It is the third month in a row that shopper numbers in the North have dropped on the high street but shopping centres have been worse hit according to the retail lobby group with footfall falling to -5.5 per cent in August.
Aodhán Connolly, director of the NIRC, said although there were less shoppers making purchases generally the overall drop had not been quite as severe as had been recorded in July.
Mr Connolly said the August statistics represented the best footfall result in three months.
But he warned that this trend might not continue given the current political backdrop.
Positive step
“This is a small positive step, the political instability currently seen in Northern Ireland will not have a positive effect on consumer confidence nor on the future investment plans for retailers in Northern Ireland,” he said.
Mr Connolly said local retailers wanted the political parties to work together to nurture an investment friendly atmosphere.
One reason for the sharp drop in shopper numbers may have been Northern Ireland’s less-than-seasonal summer weather.
But while the weather may not have persuaded people to go shopping it may have inspired them to leave the country according to latest figures from Belfast International Airport (BIA).
The airport said passenger numbers and business activity reached a nine year high over the summer months.
Last month passenger numbers at BIA rose by 11.1 per cent year on year.
Separately other new economic data released on Monday shows that the North’s private sector grew again during August – but at a much slower pace than before.
New jobs
Ulster Bank Northern Ireland Purchasing Managers Index (PMI) showed that during last month more new business orders were recorded and firms also created more new jobs.
But the rate of expansion was “only slight” and was weaker than the UK economy average.
Richard Ramsey, chief economist in Northern Ireland for Ulster Bank, said increasing evidence that a global slowdown, driven by China, is underway is a worrying development for the North.
“Whilst Northern Ireland’s trade with China is somewhat limited, the local economy is not immune from a wider global slowdown. The manufacturing sector is particularly sensitive to changes in global economic conditions.
“Indeed, the Ulster Bank PMI survey for Northern Ireland revealed a notable slowdown in manufacturing output, new orders and job creation. New order growth hit a six-month low in August and employment growth almost stagnated,” Mr Ramsey said.
He has also warned that local business confidence is likely to be impacted over the coming months by the ongoing political difficulties and the uncertainty that continues over public sector budgets.
