- Written by Clodagh Rice
- BBC News NI Business Correspondent
image source, Getty Images
Manufacturing was one of the sectors that reported an increase in business activity in January
Northern Ireland businesses reported strong growth in order intake last month, boosting confidence, according to Ulster Bank research.
Each month, the bank asks companies across the private sector about issues such as staffing, exports and new orders.
It is considered a reliable indicator of economic performance.
This suggests that the private sector started 2024 in a stronger position than it ended 2023.
Richard Ramsay, the bank's chief economist, said optimism was at a 32-month high.
“The most surprising thing about the latest survey was the rise in business confidence,” he said.
“Local businesses were the most optimistic about future production levels since May 2021. Positive sentiment was evident in all four sectors.”
Ramsey said the new optimism is leading to new product launches and increased orders.
“Importantly, the significant improvement in outlook predates the Stormont restoration,” he said.
“The impact of the political climate on sentiment should become clearer in February's survey.”
Three out of four sectors – manufacturing, services and retail – all reported an increase in business activity in January, with only the construction sector reporting a decline.
Ramsey said a significant recovery in domestic demand led to an increase in new orders, the first increase in eight months.
“Surgent retail demand and a return to increased manufacturing orders more than offset continued declines in services and construction,” he said.
The manufacturing, service and construction industries all increased headcount last month, with only the retail industry reducing staffing levels for the first time in more than a year.
