A “TITANIC” surge in tourist figures might help boost job prospects in Northern Ireland’s service sector over the coming months but any ripple effect is unlikely to stabilise the local economy, new research today suggests.
Latest economic analysis from Ulster Bank shows the North’s struggling private sector suffered yet another setback last month.
The bank’s Purchasing Managers’ Index (PMI) – which measures the performance of local manufacturing, service, construction and retail/wholesale sectors – recorded a further deterioration in business conditions right across the board.
The PMI also highlighted a “steep and accelerated decline” in the local private sector, which the bank attributed to a major fall in new business won by local firms.
The fall in sales orders and business activity ultimately translated into further job losses in the North last month with firms in the construction sector recording the largest drop in employment.
Richard Ramsey, chief economist for Northern Ireland at Ulster Bank, said the continuing decline in the North’s private sector was in contrast to the private sectors in Britain and the Republic, which showed evidence of “positive growth” last month.
“Unlike its counterparts in GB and the RoI, the latest PMI survey for Northern Ireland is not encouraging. It should be remembered that not all firms are following this wider trend. There are firms reporting a rise in both output and new orders. However, the problem is that there are around twice as many firms signalling declines. As a result, there are insufficient drivers of growth to stabilise the local economy at present,” Mr Ramsey said.
He said there was strong local optimism that various tourist campaigns from golf to Titanic commemorations may generate a certain momentum in the local service sector but other sectors remain under critical pressure.
