Happy new year for local economy

Christmas shoppers boosted retail conditions in December

The Northern Ireland economy has begun the new year in a strong position, according to a survey of local firms.

The report by Ulster Bank economists found companies were reporting a growth in orders and extra staff were being taken on to cope with the workload.

The retail and construction sectors are especially strong at present, it said.

A spokesman said that "new business levels and work backlogs are close to previous highs, which points to further employment gains in 2007".

Pat McArdle, who is Ulster Bank chief economist, said: "Private sector employment expanded at the fastest pace in four and a half years, confounding the more pessimistic projections in vogue in recent times.

"Moreover, in terms of economic activity, NI consolidated its position ahead of the UK average and, indeed, its other main trading partners, the Republic of Ireland and the Eurozone."

The Ulster Bank's Purchasing Managers' Index report is based on information gathered during December.