PMI: Growth of new work at nine-month high

Graphic showing that the Ulster Bank NI PMI has seen growth in new business at a 9-month high in June

Today sees the release of June data from the Ulster Bank Northern Ireland PMI®. The latest report – produced for Ulster Bank by Markit – indicated that output growth was maintained as new orders rose at an accelerated rate. Increased new business led to a build-up of outstanding work, but the rate of job creation eased. Meanwhile, cost inflation moderated and companies raised their output prices for the first time in ten months.

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UK CPI dips into deflation territory for first time since 1960

Last month UK CPI inflation dipped into deflation territory for the first time since March 1960. Following two months of no inflation (0.0% y/y) in February and March, consumer prices fell marginally by 0.1% y/y in April. Whilst technically this represents deflation, it is not the same phenomenon that blighted the Japanese economy in its lost decades or that occurred during the 1930s depression.  In these instances, sustained periods of falling prices were economically damaging as consumers were deterred from purchasing goods as prices would fall in the future.

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