NI private sector staffing falls for first time in four years
Staffing levels in Northern Ireland's private sector fell last month for the first time in four years, according to a survey.Every month, Ulster Bank asks firms from across the economy about things like their employment levels, order books and exports in what is considered a reliable indicator of economic performance.Firms scaled back their workforce numbers for the first time in four years, which the survey suggested, was in part due to efforts to limit overheads.NatWest chief economist Sebastian Burnside said Northern Ireland's private sector was going through a challenging period.
"Firms acted to lower staffing levels amid further declines in output and new orders, but also to try and limit overheads before the impending increase in employer National Insurance contributions," he said."In fact, both input costs and output prices rose at the sharpest rates in almost two years, with costs up more quickly in Northern Ireland than anywhere else in the UK."There was a dip in business activity in Northern Ireland in February.Those who took part in the survey linked lower output to falling new orders amid a "subdued demand environment".The sharpest contractions were in the construction and retail sectors.
Optimism about future?
The news came as a survey by Danske Bank suggested consumer confidence improved at the end of last year with more people planning to spend on things like furniture and holidays.It suggested people were feeling more optimistic about their current and future finances, which the bank suggested was linked to optimism in relation to Northern Ireland's political stability and the lower rate of inflation.Some 1,000 people took part in the survey in December 2024.Danske Bank economist Hannah Martin said: "Most survey respondents reported that they expected to spend the same amount, or more, on higher value-items such as furniture or holidays over the coming year."Several factors may be influencing this more optimistic outlook, including the lower rate of inflation relative to that experienced over the last few years, and rising wages, both of which support spending power."How the rate of inflation moves during 2025, and any impacts that could have on the current pace of interest rate reductions, are likely to be key determinants of consumer confidence and household spending growth this year."
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