Belfast Telegraph

UK Website Of The Year

Businesses hiring staff at fastest rate for 14 months

Published 14/12/2015

Some Ulster Bank customers were unable to use their debit cards in Tesco stores
Some Ulster Bank customers were unable to use their debit cards in Tesco stores

Businesses in Northern Ireland hired staff at the fastest rate in over a year in November, figures indicate.

The latest Ulster Bank Purchase Managers' Index (PMI), which provides a monthly snapshot of economic activity in the private sector, also recorded growth in output and new orders.

However, productivity is still below pre-recession levels and certain sectors - namely retail and manufacturing - experienced negative results in November.

Richard Ramsey, chief economist with Ulster Bank in Northern Ireland, said: "Northern Ireland's private sector reported a notable improvement in business conditions in November.

"The pace of growth in business activity and new orders accelerated relative to the modest levels of expansion recorded in October.

"However, these rates of growth remain below the pre-recession historical average.

"Meanwhile firms increased their staffing levels at their fastest rate in 14 months.

"Furthermore, the pace of employment growth continues to rise at a faster rate than the pre-downturn long-term average."

Mr Ramsey said while overall figures were positive, the retail and manufacturing sectors continued to struggle.

"Underneath the positive headlines the performance at a sector level was somewhat mixed," he said.

"The overall pick-up in the rate of growth in business activity, new orders and employment was due to the services and construction industries. The latter posted its strongest rates of growth in output and new orders in over a year.

"The improvement in services and construction firms concealed a slowdown in retail sales and outright contraction within manufacturing. Retail sales are easing from a period of very strong growth. However the performance of the manufacturing sector is of more concern, with output, new orders and employment all falling in November.

"Manufacturers have reduced their headcount in each of the last three months. This comes ahead of a significant number of high profile redundancies, already announced, but due to take place next year.

"While the return of pay rises coupled with 'noflation' will support consumer spending and therefore the retail sector next year, 2016 does not look as if it will be a great year for manufacturing."

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting?

Read More

From Belfast Telegraph