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The construction industry has been one of the sectors experiencing growth in recent months.
Northern Ireland’s economy grew by 0.4% in the second quarter of 2024, according to official data.
Growth came from construction and services, which make up the largest part of the economy.
Business services remain the fastest growing sector of the economy, with output up 2.9% compared to the first quarter.
Since the pandemic began, the business services sector has grown by 33%, much faster than the economy as a whole.
This includes banking, law, accounting, management consulting, etc.
Part of the reason for the strong performance is likely due to the work carried out by Northern Ireland-based staff for clients in the UK and overseas.
Canadian IT and consulting firm CGI set up in Northern Ireland in 2021 as part of a headcount expansion across its UK operations.
Chris Shorthouse, the firm’s client engagement head for Scotland and Northern Ireland, said the development of hybrid working during the pandemic was at the heart of this.
“COVID has given us the opportunity to really put in place a hybrid working model that allows us to employ talent in Northern Ireland who can fulfil contracts in the UK,” Mr Shorthouse said.
CGI was this week awarded an £85 million contract by Stormont Ministry of Justice to modernise the IT systems used by the courts service.
Mr Shorthouse said the company was looking to expand further locally but its investment was not dependent on winning contracts in Northern Ireland.
“Our future in Northern Ireland has never depended on winning contracts. The investment decision was really centred around the talent pool.”
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Northern Ireland manufacturing faces ‘challenging times’ due to global issues
Consumer services, primarily retail and hospitality, are in a tougher position with output remaining roughly flat through 2022 and 2023 as high inflation hits disposable incomes.
These figures suggest there has been a slight recovery in the first half of this year, with production up by more than 3% compared to the same period in 2023.
Belfast-based hospitality group, Ringland Group, has just opened a new bar and restaurant, Amelia Hall, in the city centre.
The company’s managing director, Peter Ringland, said the improving economic situation was boosting confidence and this was being seen by customers.
“A slight easing in interest rates has created confidence in investing. Customers’ willingness to invest and per capita spending are gradually increasing.”
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Chris Shorthouse said his company wanted to do more business in Northern Ireland.
Manufacturing in Northern Ireland continues to face a challenging environment, with production volumes continuing to fall in the second quarter.
Earlier this week US company Terex, one of Northern Ireland’s largest manufacturing employers, announced its second round of cost cuts this year.
Northern Ireland Manufacturing chief executive Stephen Kelly said it was a “challenging time” for the industry, mainly due to global issues.
“The world is at war, buyers are worried, and money is so expensive that it’s hard to put money into equipment with big capital costs.”
“But these things happen in cycles. We expect that this will happen again and that everything will return to normal over the next year or so.”
