Business Activity Dropped In December In NI

There has been quite a lot of good news recently with regard to the economy here in Northern Ireland, with the feel-good factor seemingly making a welcome return. However the latest data from the Ulster Bank NI Growth Tracker shows that business activity dropped in December of last year, the first time this has happened in around 13 months. The business activity index dropped down from 51.5 in November to 47.7 in December.

Fall In New Orders And Rise In Input Costs

One bright spot on the horizon was that employment increased once again, but there was a fall in new orders and input costs for businesses increased as well. Remarkably, employment has increased for the last 24 months in a row, and Northern Ireland was the only region in the UK to see an increase last month.

The feeling is that the fall in business activity could have been largely down to the Holyhead port shutdown, closed due to the havoc that Storm Darragh wrought, or at the very least it was a big factor in the slowdown of the economy. The shutdown has meant that delivery times have been considerably longer for many firms too. There does seem a likelihood that the port will partially re-open at some point this week, which will hopefully get things moving again.

The Northern Ireland Sector Ended The Year On A Softer Note

Speaking about this new data from the Ulster Bank NI Growth Tracker, Nat West chief economist Sebastian Burnside is quoted in an article by Margaret Canning on the Belfast Telegraph website as saying:

“The Northern Ireland private sector ended 2024 on a softer note, recording the first reduction in business activity for more than a year on the back of a further decline in new orders.

“This represented a marked turnaround in fortunes for local firms as rapid growth was recorded through much of 2024, even through to as late as October, when Northern Ireland was the strongest performer across the UK.”

So it certainly isn’t all bad news, with employment levels at record levels across the region, which is great to see. If the main factor in the slowing of business activity was the Holyhead port shutdown then this is obviously only a short term concern, and hopefully businesses will see more new orders coming in over the next few months.

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