The Northern Ireland Chamber of Commerce and Industry says that all key indicators in the region show that the economy has weakened in the first quarter of 2019.

While businesses are trying to grow sales, exports and jobs, they are becoming less confident about prospects for turnover and profitability in the next year, so that members’ investment plans are also in decline.

In a survey carried out with BDO, NI Chamber finds that at the same time more of its members are making tangible preparations to leave the EU. Around one-third of Chamber members have either established or are considering establishing a presence outside the UK. One in eight have changed recruitment plans and 10% have refocused their target markets.

Three in five NI Chamber members believe that Brexit is affecting their ability to attract skilled workers, with skills mismatch also a key business concern.

Chief executive Ann McGregor commented: “Local manufacturers faced a better trading start to 2019 after a fairly muted end to 2018, although confidence and investment intentions were less positive. Most key balances are positive, suggesting some growth, with employment balances being one of the most positive indicators in Q1. However, order books remain weak for both domestic and exports orders.”

In Association with

Services turned in a “particularly weak domestic performance” through Q1. Confidence levels are down too, mostly on account of Brexit, a factor which has also boosted unease over exchange rates.

McGregor added: “The damaging impact of Brexit is becoming increasingly apparent as Northern Ireland businesses face continued uncertainty around its outcome. Investment intentions are weakening further and businesses are telling us that they are setting up or thinking of setting up/relocating outside Northern Ireland.

“Our findings should serve as a clear warning that the ongoing impasse at Westminster is contributing to a sharp slowdown in the real economy right across all of the UK regions. These are some of the weakest figures we’ve seen in nearly a decade, and that’s no coincidence. Business is certainly hitting the brakes."

Photo (l-r): Chris Morrow,Head of Policy at NI Chamber, Ann McGregor, QES economist Maureen O’Reilly and BDO’s Brian Murphy