Official Data Indicates Northern Ireland’s Economy Expanded in Q3

Official data indicates that Northern Ireland’s economy experienced growth throughout the third quarter of 2024. The services sector, which constitutes the largest segment of the economy, recorded an output expansion of 1.1% when measured against the preceding quarter. This expansion was primarily propelled by a resurgence in the retail and hospitality sectors, which collectively achieved a quarterly growth of 2%. Furthermore, the manufacturing sector displayed its initial indications of recovery, registering its strongest quarterly growth since early 2021. Manufacturing output increased by 1.6% during the quarter and showed a 1.3% rise when compared to the corresponding period of the previous year. The manufacturing sector has faced challenges over recent years, with its output remaining largely stagnant following an initial rebound after the pandemic. Businesses within this sector have been impacted by difficulties such as elevated energy expenses, interruptions to supply chains, and a scarcity of skilled labor. Earlier in the current year, Terex, recognized as one of the largest employers in manufacturing, implemented job cuts and other initiatives aimed at reducing costs. In stark contrast, the services sector has experienced consistent growth since the pandemic, with its output currently standing almost 11% higher than the level recorded at the close of 2019. This expansion has been spearheaded by business services, encompassing areas such as accountancy and consulting, which has expanded by nearly 30% over a five-year period. Nevertheless, it registered a 1.4% decline in the third quarter, a trend that could indicate diminished activity among certain large consultancy firms. Consumer services demonstrated robust performance, with retail sales increasing by nearly 3% during the quarter and by 5% throughout the year. This could be attributed to an improvement in household financial situations, coinciding with a reduction in the inflation rate. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the material found on external websites. Information regarding our policy on external linking is available.