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25/08/2009
Mixed Economic News As Construction Declines
here are conflicting reports on the 'health' of Northern Ireland's economy today.
While one of Ireland's biggest construction-based companies has suffered a steep fall in profits, an NI bank has suggested a recovery is underway.
CRH, the quarry and building products group, said pre-tax profits for the first six months of 2009 were €108m compared to €606m during that part of last year.
The company, which operates in Northern Ireland as Northstone, Tyrone Brick and Springvale EPS, also reported a big drop in demand in its Irish operation in the first six months of this year, saying there had been, "very significant declines in residential and non-residential construction".
However, in counterpoint, a weak recovery has begun, according to the Northern Bank.
The bank's 'Quarterly Sectoral Forecasts' report said the majority of business sectors in NI were now experiencing improvements in activity.
Chief Economist, Angela McGowan, said that although growth forecasts were small, it indicated that the worst of the recession was over.
"We will have to wait until next year for positive year-on-year growth, which we estimate will be 0.3% on average in 2010," she said.
"However, the overall health of the local economy in quarter three this year is encouraging, with signs of incremental improvements."
Other good news emerged today, as a Co Antrim company announced that it had won two multi-million pound contracts to supply buses to Singapore and Hong Kong.
The Wright Group in Ballymena is to build 200 buses for the Asian market.
The positive development comes on foot of earlier news that it was being forced to shed 235 jobs. However, fewer than 100 people would face redundancy because of the contract.
They will supply 150 buses for SBS Transit in Singapore, in partnership with Volvo. In Hong Kong, they will supply 60 buses for the Kowloon Motor bus company.
Group Managing Director, Mark Nodder said: "These contract wins come at a very important time for our company and reflect the hard work of all our staff to pursue new markets around the world.
"We are keen to develop ourselves as global leaders in bus design, and will continue to actively pursue all opportunities available."
Invest NI Chief Executive Alastair Hamilton said: ""The Wright team has worked to secure this new contract despite global competition."
Meanwhile, the SDLP Enterprise spokesperson Alasdair McDonnell said the parties that control the Executive need to take action to consolidate and sustain the weak trend towards economic recovery.
Commenting on quarterly forecasts from Northern Bank economists, he said: "There are signs of recovery in economic activity and the worst of our recession may be over. The bad news is that the trend is very weak and our labour market will continue to contract even as the recovery kicks in - unless we do something about it.
"What is needed is strong leadership and determination to use our devolved powers to the full for the common good and while no one expects us to 'defy gravity' or the worst effects of the global downturn, a united Executive, united Assembly and united economic community could maximise the opportunities of the upturn," he said.
See: Bus Builders To Shed Over 200 Posts
(BMcC/GK)
While one of Ireland's biggest construction-based companies has suffered a steep fall in profits, an NI bank has suggested a recovery is underway.
CRH, the quarry and building products group, said pre-tax profits for the first six months of 2009 were €108m compared to €606m during that part of last year.
The company, which operates in Northern Ireland as Northstone, Tyrone Brick and Springvale EPS, also reported a big drop in demand in its Irish operation in the first six months of this year, saying there had been, "very significant declines in residential and non-residential construction".
However, in counterpoint, a weak recovery has begun, according to the Northern Bank.
The bank's 'Quarterly Sectoral Forecasts' report said the majority of business sectors in NI were now experiencing improvements in activity.
Chief Economist, Angela McGowan, said that although growth forecasts were small, it indicated that the worst of the recession was over.
"We will have to wait until next year for positive year-on-year growth, which we estimate will be 0.3% on average in 2010," she said.
"However, the overall health of the local economy in quarter three this year is encouraging, with signs of incremental improvements."
Other good news emerged today, as a Co Antrim company announced that it had won two multi-million pound contracts to supply buses to Singapore and Hong Kong.
The Wright Group in Ballymena is to build 200 buses for the Asian market.
The positive development comes on foot of earlier news that it was being forced to shed 235 jobs. However, fewer than 100 people would face redundancy because of the contract.
They will supply 150 buses for SBS Transit in Singapore, in partnership with Volvo. In Hong Kong, they will supply 60 buses for the Kowloon Motor bus company.
Group Managing Director, Mark Nodder said: "These contract wins come at a very important time for our company and reflect the hard work of all our staff to pursue new markets around the world.
"We are keen to develop ourselves as global leaders in bus design, and will continue to actively pursue all opportunities available."
Invest NI Chief Executive Alastair Hamilton said: ""The Wright team has worked to secure this new contract despite global competition."
Meanwhile, the SDLP Enterprise spokesperson Alasdair McDonnell said the parties that control the Executive need to take action to consolidate and sustain the weak trend towards economic recovery.
Commenting on quarterly forecasts from Northern Bank economists, he said: "There are signs of recovery in economic activity and the worst of our recession may be over. The bad news is that the trend is very weak and our labour market will continue to contract even as the recovery kicks in - unless we do something about it.
"What is needed is strong leadership and determination to use our devolved powers to the full for the common good and while no one expects us to 'defy gravity' or the worst effects of the global downturn, a united Executive, united Assembly and united economic community could maximise the opportunities of the upturn," he said.
See: Bus Builders To Shed Over 200 Posts
(BMcC/GK)
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Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
