Ulster Bank survey: NI economy continues to contract

The Northern Ireland economy continued to contract in September, according to a survey by the Ulster Bank.

Every month the bank asks firms across the private sector about issues such as staffing levels and order books.

The survey is considered a reliable indicator of economic performance and last month NI firms reported a sharper fall in activity.

This was before any turbulence caused by the chancellor's "mini budget".

All sectors reported a fall in activity for the fifth month in a row.

The one positive was that employment continued to rise, but the rate of job creation was only marginal.

Survey respondents said worsening economic conditions, falling consumer confidence and rising prices were reasons for the decline.

The bank's chief economist in Northern Ireland, Richard Ramsey, said: "Services firms reported the sharpest increases in their cost base, with wages and energy costs now increasingly at the forefront of inflationary pressures."

"The one positive in the latest report is employment with firms notching up their 19th consecutive monthly rise in staffing levels.

However, the expected further reductions in business activity will no doubt weigh more on hiring intentions in the months ahead," he added.

The latest survey was carried out before the chancellor's mini-budget announcement.

Mr Ramsey said the plan was unlikely to have the desired outcome.

He said: "Firms may be relieved to see energy cost pressures easing, accompanied by much-needed government support. But borrowing costs have now moved rapidly in the opposite direction."

"It's hard to see the chancellor's much-desired growth coming any time soon," he added.