Northern Ireland's private sector has shown signs of recovery in July 2026, according to a new report from Ulster Bank.
The private sector in Northern Ireland has shown a significant turnaround in July 2026, marking the end of a three-month decline. This positive shift is highlighted in the latest monthly growth tracker report from Ulster Bank, a subsidiary of NatWest.
The report, which surveyed around 200 firms across various sectors, provides an early indication of the region’s economic performance.
The data reflects a notable improvement in business activity, particularly in the construction, manufacturing, and services sectors. While the retail sector continued to experience a decline, the reduction was less severe compared to the previous months of May and June.
Key Findings from the July Report
The July data from Ulster Bank’s growth tracker reveals several key insights. The construction, manufacturing, and services sectors all rebounded into expansion mode, indicating a stronger economic performance. The retail sector, although still in decline, showed signs of improvement.
Sebastian Burnside, Ulster Bank’s chief economist, described the findings as “a much more encouraging picture” for Northern Ireland’s private sector. He noted that business activity bounced back into growth territory following difficulties in May and June. This recovery was attributed to signs of stabilization in customer demand.
Employment and Inflation Trends
On the employment front, there was positive news as some firms looked to expand their staffing levels. However, Burnside pointed out that companies faced difficulties in finding the right workers, which limited their ability to hire. Inflationary pressures remained persistent, but increased domestic political stability may support more confidence about the future for Northern Ireland businesses.
Future Outlook
Looking ahead, Burnside suggested that if this optimism continues, we may see stronger business performance in the second half of 2026 than in the first. This positive outlook is crucial for the region’s economic recovery and growth.
