Coronavirus: Ulster Bank survey suggests rise in trade but layoffs continue

Business activity picked up in the third quarter of the year but Northern Ireland firms continue to lay off staff, an Ulster Bank survey suggests.

Each month it asks private sector firms about new orders, staffing and exports in what is considered a reliable indicator of economic performance.

This pick-up in activity comes after the survey reported record falls during lockdown.

It said manufacturing, construction and retail all grew in the third quarter.

But the biggest sector of Northern Ireland's economy - services - reported a more "lacklustre performance".

The survey suggested that all four sectors are still shedding jobs "at a significant rate".

Ulster Bank's chief economist Richard Ramsey said: "Northern Ireland's private sector has entered the fourth quarter in better shape than it started the third quarter.

"However, the pace of recovery remains relatively weak with the low-hanging fruit on the growth front already plucked.

"What little momentum the economy has will be tested by the headwinds of more restrictions associated with the resurgence in the number of new Covid-19 cases and Brexit.

"While more support measures from Westminster and Stormont will be forthcoming, the recovery will struggle to gain traction in this environment."