By John CampbellBBC News NI economics and business editor
April 4, 2023
image source, Getty Images
Northern Ireland’s business performance improved in the first quarter of 2023, a study by the NI Chamber of Commerce suggests.
Between February 21 and March 6, almost 250 companies were surveyed.
The responses showed an improving export performance and a significant increase in confidence.
However, companies continue to struggle with the impact of inflation, especially energy costs.
Half of the companies surveyed had an increase in energy costs of 30% or more in the past quarter.
There are some signs that inflationary pressures are starting to ease.
Sixty percent of those surveyed expected to increase their prices, compared to more than 75% in the last two quarters of 2022.
The survey, which took place when the Windsor Framework was agreed, found that 60% of respondents believed an agreement between the EU and the UK would be important for economic growth.
Economy back to growth
Northern Ireland’s short-term economic outlook has improved recently.
However, Andrew Bailey warned that the UK was “not heading to the races” as the economy is expected to grow only slightly in the coming months.
Improved economic performance does not immediately translate into improved household finances.
In March, the Office for Budget Responsibility’s independent forecaster said that household income — if rising prices are taken into account — would fall by six percent this year and next.
Living standards will not return to pre-pandemic levels until 2027, it warned.
