The north’s private sector returned to growth in July following three months of decline, a new report from Ulster Bank suggests.
The latest monthly growth tracker from the NatWest-owned lender reflected a marked turnaround for businesses last month at the start of the second half of 2026.
Based on the feedback of around 200 firms across the manufacturing, services, construction, and retail sectors, Ulster Bank’s monthly survey is considered an early bellwether for how the economy is performing.
The tracker showed the construction, manufacturing and services sectors rebounding back into expansion mode during July.
While retail posted another monthly decline in activity, it still reflected a significant improvement on the sector’s poor performance across May and June.
The latest data for July from Ulster Bank’s growth tracker. (Ryan)
Ulster Bank’s chief economist Sebastian Burnside described it as “a much more encouraging picture” for the north’s private sector.
“Business activity bounced back into growth territory following difficulties in May and June, helped by signs of stabilisation in customer demand.
“There was also good news on the jobs front, with some firms looking to expand staffing levels,” he added.
“That said, there were continued reports of the difficulties faced in finding the right workers, which ultimately limited the extent to which companies were able to hire.
“Inflationary pressures remained persistent but increased domestic political stability may support more confidence about the future for Northern Ireland businesses in the coming months.
“Should this optimism continue then we may see stronger business performance in the second half of the year than in the first.”