Output In The Private Sector Falls But Many Companies Still Optimistic About The Future

A recent survey by the Ulster Bank has found that output fell in the private sector once more in the month of January. However many companies still seem to be cautiously optimistic about what is around the corner as they are taking on more staff.

Northern Ireland Is Still Firmly In Recession

The January survey seems to confirm the widely held view that Northern Ireland, as with the rest of the UK, is in recession. Output is down in manufacturing, construction and services, with firms showing a decrease in new orders. One positive note is that the retail sector did show a slight bounce in trade after a prolonged period of falling sales. This change in direction for retail could have something to do with the payment of £600 to struggling households across the country, which was made by the government to help people with their spiraling energy bills. A lot of this money has trickled down to retail or so it appears.

The Republic Of Ireland Is Helping Due To Cross Border Shopping

Speaking about the results of the survey in a BBC News article, Richard Ramsey, who is the Ulster Bank chief economist, pointed out the fact that, as the economy of the Republic of Ireland seems to be in reasonably rude health, this is giving much needed help across the border. He said that:

“Unlike Northern Ireland and the UK, the Republic of Ireland is neither in nor flirting with recession and cross-border shopping is providing some valuable support.”

He went on to say that:

“Both business activity and incoming orders fell for their ninth successive month, although the rates of decline slowed in January.”

The Bank of England has recently suggested that the recession could be shorter than was at first expected, which would be great news for all concerned. But it is important that businesses allow for a whole range of scenarios as we move through the year, recent history has shown that we should never take anything for granted and that we should have an action plan to fall back on if things do not improve, or even worsen in the coming months.

Here at WHR Accountants we are experts at developing business plans for businesses of all sizes, no matter what sector they are in. So if you feel that your business needs a helping hand in the very near future please get in touch with our dedicated team by giving us a call on 028 3752 2909.