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Good weather boosts the Northern Ireland economy

9th July 2018

The latest purchasing managers index (PMI) survey from Ulster Bank indicates businesses in Northern Ireland are reaping the rewards of the recent heatwave.

Following the hottest June in 170 years, the PMI survey signalled that the private sector ended the second quarter of 2018 on a positive note, observing sharper rises in output and new orders recorded.

After the ‘Beast from the East’ and its hit on the economy, Ulster Bank’s chief economist Richard Ramsey said the hottest June on record appeared to be a source of relief- with some respondents also attributing the increase in demand to the good weather.

“Overall business activity and new orders rose at their fastest rates in four months during June, with export orders growth remaining particularly strong, driven by demand from customers in the Republic of Ireland,” Mr Ramsay said.

“Meanwhile, firms increased staff numbers for the 41st consecutive month, albeit at a slightly slower rate than in May.”

Construction firms posted the fastest rise in staffing levels and output accelerated sharply to a 45-month high- with the good weather a notable contributing factor.

Mr Ramsay said: “Construction order books filled up at their fastest rate in 28 months, which bodes well for construction activity in the short-term.”

Manufacturers also saw staff numbers increase- employment grew for the first time in three months.

Additionally, manufacturing has been the main beneficiary of the growth in exports, with output growth accelerating to a 44-month high in June.

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