The global COVID-19 pandemic has led to a record fall in Northern Ireland’s business activity, according to a survey by Ulster Bank.
The bank’s latest Northern Ireland PMI report indicated both the private sector’s output and new orders have fallen at the sharpest rates since the survey began in August 2002, surpassing the previous record signalled at the height of the global financial crisis in early-2009.
Companies reduced staffing levels substantially due to the sharp reduction in activity, ending a three-month sequence of job creation, while business confidence slumped.
A further increase in input costs was recorded in March, but the rate of inflation softened to a 45-month low.
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Efforts to try and attract customers led companies to lower their selling prices for the first time in three months, particularly within the manufacturing and service sectors.
More than half of all NI companies that responded to the survey have predicted a fall in output over the coming year.
Richard Ramsey, Ulster Bank’s chief economist in NI said that for an economic recovery to begin, the health emergency must pass: “Only when the lockdowns are lifted will economists be able to gauge the strength and timing of the economic recovery in any meaningful way.”
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He added: “All 12 of the UK regions saw business activity plunge last month but Northern Ireland reported the steepest decline.
“As sobering as March’s data is though, the reality is that things are going to get worse for the economy before they get better. It is worth pointing out that 80% of the respondents in the Northern Ireland survey replied before the Prime Minister announced the full UK lockdown on 23 March.
“The April survey will be the first full month that the UK, Northern Ireland and Republic of Ireland economies will be under full lockdown conditions.
"Therefore the pace of contraction will accelerate further to fresh record lows. The local economy is enduring its fastest and deepest economic decline in a century. “
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Source: Written from press release
