Activity in the Northern Ireland economy contracted for the fourth consecutive month in August as demand tapered in reaction to soaring inflation, according to the latest PMI report from Ulster Bank.
In the latest hint at the toll “intense price pressures” are having on businesses, the PMI, which surveys private sector businesses throughout the province, revealed a pessimistic outlook for the year ahead and indications that the tight labour market is also easing. Employment continued to grow last month and companies still reported difficulties finding staff, but the growth was recorded at the weakest pace of 18 months.
Unsurprisingly, retailers were hardest hit with the sector posting the biggest fall in demand and the only sector not to increase staffing levels in August. Offering some succour for them and other business was the fact the rate of price rises had eased slightly, although it remained “stronger than anything reported prior to May 2021”.
