Economy bouncing back after lockdown

Report reveals drop-off decrease Distillery to toast new £1m fit-out

HENDERSON Retail has created 21 new jobs with the completion of the £500,000 fit-out of the recently constructed SPAR Carnmoney Hill. The store is the first of the retailer’s new builds to open amid the COVID-19 pandemic and has incorporated all social distancing and other measures into its design. The new outlet on the outskirts of north Belfast will be run by store manager Andrew Mcileese.

THE first signs the Northern Ireland economy is bouncing back from the crippling impact of lockdown have been found in a keenly-awaited Ulster Bank report.

Its PMI showed nearly all areas of the local economy contracted last month, but at a much slower rate than the record lows recorded in April and May.

Richard Ramsey, Chief Economist at Ulster Bank in Northern Ireland and the report’s author, said there is reason to find cheer in the data.

He added: “June marked the end of a quarter Northern Ireland’s private sector has never seen the like of before.

“Unsurprisingly, the latest Ulster Bank Northern Ireland PMI therefore confirms record rates of decline in output, orders, exports and employment during this period.

“But while the quarterly data is bleak, this conceals tentative signs of a recovery on a month-tomonth basis.”

Encouragingly, the manufacturing sector actually grew in June, the only sector to register a positive in the last eight months.

But the report found manufacturers appear to be cutting staff numbers to stay afloat. Similarly, the retail sector saw sales stabilise as lockdown restrictions were lifted but firms are still cutting employees.

The report said retailers have been the most adversely affected by lockdown restrictions while the reopening of businesses has been accompanied by a surge in costs linked to personal protective equipment.

Retailers saw input costs leap at the fastest rate in the past 33 months.

The hospitality sector remained under pressure in June with only one in four firms reporting a rise in activity.

That figure is expected to improve significantly in July with the reopening of bars and restaurants while the reduction in VAT to 5% from 20% announced by the Chancellor will also help many beleaguered owners.

While the more positive mood in the PMI report has helped boost confidence in the economy, it appears business here remains unconvinced.

The report added Northern Ireland companies are the most pessimistic about output growth for 2021 of all UK regions.

MARCON has been awarded a fit-out contract for the eagerly-awaited Hinch Distillery in Co Down.

The total investment in the works will be around £1million once they are completed.

From left are Mark O’connor, director, Marcon Fit-out, and Dr Terry

Cross OBE, chairman, Hinch Distillery.

MANAGER Andrew Mcileese