• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

Call us today!  028 3752 2909 or 028 8778 9500

  • Facebook
  • LinkedIn
  • Twitter

WHR Accountants

  • HOME
  • ABOUT
  • OUR TEAM
  • SPECIALIST SERVICES
    • Audit & Assurance
    • Accountancy
    • Book Keeping
    • Computerisation
    • Payroll Services
    • Business Development & Start-up
    • Tax
    • VAT
    • Business Information Systems Support
  • BECOME A CLIENT
  • BLOG
  • VACANCIES
  • CONTACT
  • SEARCH

Mobile Menu

  • HOME
  • ABOUT
  • OUR TEAM
  • SPECIALIST SERVICES
    • Audit & Assurance
    • Accountancy
    • Book Keeping
    • Computerisation
    • Payroll Services
    • Business Development & Start-up
    • Tax
    • VAT
    • Business Information Systems Support
  • BECOME A CLIENT
  • BLOG
  • VACANCIES
  • CONTACT
  • SEARCH
  • Facebook
  • LinkedIn
  • Twitter
Home » Blog » Private Sector Contracts Further As Orders Fall

Private Sector Contracts Further As Orders Fall

October 11, 2022 By //  by Des Ingham Leave a Comment

The private sector in Northern Ireland contracted further in September, the fifth consecutive month that it has reduced its activity. The blame is being put squarely at the door of falling new orders, more cost increases and worsening economic conditions.

Contraction Very Much To The Fore In September

private sector

In a statement about the worrying trend of a contracting private sector, and in a swipe at the UK governments claim that their focus was on growth, growth and more growth, Ulster Bank chief economist, Northern Ireland, Richard Ramsey, is quoted on the Ulster Business website, saying:

“‘Going for growth’ is the Chancellor’s new approach for his new era, but contraction was very much to the fore in the September PMIs in Northern Ireland, across the UK and indeed beyond,

“And this was before the turbulence that the Chancellor’s ‘mini budget’ caused, which doesn’t bode well for the rest of the year.

“Local firms saw the pace of decline in output and new orders accelerate in September, which represented the fifth successive monthly fall with all four sectors firmly in contraction mode.

“Survey respondents cited deteriorating economic conditions, falling consumer confidence and rising prices as explanatory factors behind the continuing decline.”

Wages And Energy Costs At Forefront Of Inflationary Pressures

He went on to talk about the spiraling costs of doing business, saying:

“Services firms reported the sharpest increases in their cost base, with wages and energy costs now increasingly at the forefront of inflationary pressures.

“The one positive in the latest report is employment with firms notching up their 19th consecutive monthly rise in staffing levels.

“We have started the fourth quarter of the year with heightened uncertainty, not least in financial markets and in politics. Firms may be relieved to see energy cost pressures easing, accompanied by much needed government support. But borrowing costs have now moved rapidly in the opposite direction. It’s hard to see the Chancellor’s much desired growth coming any time soon.

“The rate of input cost inflation ticked higher, with rising energy prices key to the latest increase. In addition, companies reported higher costs for raw materials, staff and transportation,” the report says.

“Output prices also increased sharply, but at the softest pace for a year-and-a-half. Pessimism around the year-ahead outlook was the joint-strongest in almost two years amid worries about inflationary pressures and economic conditions.”

I think you will agree this all makes for pretty sobering reading. Higher costs, lowering demand and huge political uncertainty are creating the perfect storm for our private sector right now. It is certainly going to be a bumpy ride over the next few weeks and months.

Category: General

Looking for immediate answers to your questions?

Schedule a no-cost consultation today!

This is a very useful Call To Action in the “After Entry” widget area. You can put whatever you’d like in it, and change the background color to whatever you’d like.

You May Also Be Interested In:

NI Economy Forecast To Grow By 1% This Year And Next According To Danske Bank

Financial Services Sector In NI In Rude Health Says Report

Complexities & Uncertainties Of Windsor Framework Holding Back Trade Says FSB Chair

Survey Reveals A Hospitality Sector In Crisis

Extra £2.6 Billion Of New Capital Announced To Help Fund Growth

Funding Package Announced To Support Employee Ownership In NI

Private Sector Back In Growth Mode In May

Accountancy Body Calls For More Competitive Rate Of Corporation Tax

Don’t Go It Alone: Why An Accountant Is Your Best Ally For Making Tax Digital In 2026

Previous Post: « Shoppers Showing Caution As Footfall Decreases In N Ireland
Next Post: Energy Price Cap For Businesses Finally Announced »

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

WE PROMISE YOU:

If you are finding the current economic situation tough, then rest assured, we understand the pressures you face as a business owner or manager. You don’t have to face the future alone. When you choose WHR, you have an ally, a partner, a friend, in both the good times and the tough times.

028 3752 2909
028 8778 9500

RECENT POSTS

Job Retention Scheme – Update

Dear Payroll Client We are trying to continue to run our …

NI Economy Forecast To Grow By 1% This Year And Next According To Danske Bank

The Danske Bank has revised its forecast for 2026, saying that …

Financial Services Sector In NI In Rude Health Says Report

According to a recent report by TheCityUK, entitled 'Enabling …

Complexities & Uncertainties Of Windsor Framework Holding Back Trade Says FSB Chair

The Federation of Small Businesses (FSB) Chair Alan Lowry has …

Survey Reveals A Hospitality Sector In Crisis

The latest survey by Hospitality Ulster reveals that the …

Extra £2.6 Billion Of New Capital Announced To Help Fund Growth

In welcome news yesterday (Mon June 23rd), the Secretary of …

Footer

Director

James Robinson

Head Office

WHR Chartered Certified Accountants
028 3752 2909 or 028 8778 9500

56 English Street,
Armagh
BT61 7LG

Contact Us

Contact our office today. Our team are ready to help you. There is no better time than now.
Click Here →

Follow Us

Keep up to date with our social media

  • Facebook
  • LinkedIn
  • Twitter
  • Blog
  • Specialist Services
  • Privacy Policy

Website created by ZebWeb