NI survey hints at recession hope

The most intense phase of the recession in Northern Ireland may have passed according to an Ulster Bank report.

The latest Purchasing Managers Index (PMI) revealed the rate at which job losses were shed was the lowest for 12 months.

The manufacturing sector also showed its first increase in output in two years.

However, the report says construction is still being hit and the level of private sector activity is weak.

"This provides further confirmation that the worst of the output declines appear to have passed," Ulster Bank economist Richard Ramsey said.

"However, Northern Ireland firms failed to match the improved performance experienced by the UK as a whole."

Seven regions within the UK reported an increase in business activity in June which resulted in the UK getting its second successive month of private sector output growth.

Mr Ramsey said the most encouraging aspect of the Ulster Bank survey for NI was the "significant easing in the rate of job losses".

"All the UK regions reported job losses in June," he said.

"However, after Scotland, Northern Ireland firms reduced their staff headcount by a lower rate than any other UK region.

"Indeed, this was the first time since November 2007 that Northern Ireland's employment index outperformed the UK as a whole."

The survey revealed incoming new business received by private sector companies decreased for the 19th month in a row.

Respondents said weak economic conditions continued to have a "negative influence" on demand particularly in the construction and retail sectors.

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