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The consultancy EY has upgraded its forecast for the Northern Ireland economy, predicting growth of 1.1% in 2024.

In January it had forecast growth of just 0.7% but conditions have improved since then.

EY also expects growth to accelerate to 1.8% in 2025 as household finances continue to recover.

Dr Loretta O’Sullivan, EY Ireland Chief Economist, said that easing inflation was "lessening the squeeze on households’ purchasing power."

In July the Ulster University Economic Policy Centre (UUEPC) also revised its 2024 growth forecast, up from 0.8% to 1.4%.

Official data published in June suggested Northern Ireland’s services sector grew strongly in the first quarter of 2024.

The service sector is the dominant part of the local economy, covering a broad swathe of activity including retail, hospitality and business services.

Output expanded by 1.9% over the quarter and was 2.9% higher compared to the same period in 2023.

The figures also suggested consumer services such as retail and hospitality may have seen the start of a recovery after a difficult period of high inflation.

Figures for the second quarter of the year are due to be published on Thursday.