COMMERCIAL ACTIVITY SEES FIRST RISE SINCE OCTOBER 2007 - After stabilising at the end of last year, activity in the Irish construction sector fell again last month, and jobs continued to be cut sharply in the sector according to figures from Ulster Bank. Staffing levels have now declined on a monthly basis since May 2007. Building companies also said client confidence is weak and economic conditions are uncertain.
John Fahey, an economist at Ulster Bank, says that the contraction seen in January was the fastest in three months and sees the index fall further from the breakeven mark of 50. But he says there are still some positives in the January index, as construction companies lowered their purchasing activity at the weakest pace since January 2011 and sentiment levels improved despite the current poor consumer sentiment. The commercial sector saw the biggest improvement in activity in January and Mr Fahey says the downturn in this sector is now long enough to see some signs of stabilisation.
On Greece, Mr Fahey says he expects European stock markets to see some gains today after the Greek parliament last night approved measures needed to secure an international bail-out. He says investors will support more risk appetite this week but will focus on Wednesday's meeting of euro zone finance ministers in Brussels.
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MORNING BRIEFS - Fewer orders and fears over economic prospects sparked a fresh round of job cuts at private sector firms in Northern Ireland last month. Firms shed jobs at their fastest rate since June 2011, according to the latest Ulster Bank purchasing managers index, which measures the health of the private sector in the North. The bank said though that the UK economy as a whole recorded its highest rate of growth in employment levels in 11 months. Northern Ireland firms are fighting a losing battle to win further business, according to the latest economic analysis.
*** Japan's economy shrank by more than expected in the last three months of 2011 as a rising yen and floods in Thailand hurt businesses. Gross domestic product contracted by 2.3%, much worse than 1.4% contraction that analysts had forecast. Compared with the previous three months, the economy shrank by 0.6%. The figures are a blow to Japan's efforts to recover from the earthquake and tsunami last year.
*** The high rate of unemployment in the US, the world's largest economy, continues to be a concern despite encouraging economic data in recent weeks. At the same time, some of Asia's biggest economies such as China and India have also started to show signs of slowing growth. Japanese companies have also had to deal with a strong yen, which has risen more than 7% against the US dollar since April last year.
*** On the currency markets the euro is trading at $1.324 cents and 83.87 pence sterling.
