Ulster Bank: Sharp rise in new orders boosts private sector

“Retailers are recording the highest rates of cost inflation, in part linked to the rise in the National Living Wage, which is feeding into the prices that consumers pay,” Ulster Bank’s chief economist Richard Ramsey said.

He added that on the other hand, construction costs are rising at their weakest pace in 45 months which is “perhaps an indication that material cost inflation is continuing to come back from record highs”.

Mr Ramsey said that despite the continued challenge from inflation the NI economy appeared to be picking up some momentum.

“The four months since the return of the Northern Ireland Executive have witnessed a strong private sector performance, and this shows no signs of slowing, indeed quite the opposite, with the pace of output, new orders and employment all accelerating in May.

“Northern Ireland’s performance compared favourably with other UK regions, with NI topping the league table for output and employment.”