NI economy: Business performance up in first quarter of 2023, survey finds

Northern Ireland business performance improved in the first quarter of 2023, a survey by the NI Chamber of Commerce suggests.

Just under 250 firms were surveyed between 21 February and 6 March.

The responses showed an improving export performance and a big increase in confidence.

However, businesses are continuing to grapple with the impact of inflation, particularly energy costs.

Half of the companies surveyed experienced an increase in energy costs of 30% or more in the last quarter.

There are some signs that inflationary pressures are beginning to ease.

Sixty percent of those surveyed were expecting to raise their prices compared to more than 75% in the last two quarters of 2022.

The survey, which took place at the time the Windsor Framework was being agreed, found that 60% of respondents believed that an EU/UK deal would be important for economic growth.

Northern Ireland's short-term economic prospects have improved recently.

Official figures suggest the economy returned to growth in the final quarter of 2022, having previously fallen into a technical recession.

Last month, the head of the Bank of England said he was "much more hopeful" for the UK economy after the bank's analysts said the UK was no longer heading into an immediate recession.

However, Andrew Bailey warned that the UK was "not off to the races", with the economy expected to grow only slightly in the coming months.

Improved economic performance does not immediately feed through to improved household finances.

In March, independent forecaster the Office for Budget Responsibility said that household incomes - once rising prices were taken into account - would drop by six percent this year and next.

Living standards will not recover to pre-pandemic levels until 2027, it warned.