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The NI economy showed some initial signs of recovery in the third quarter of this year but some businesses have not seen any signs of improvement.

That is according to a survey by NI Chamber of Commerce and consultancy BDO.

There were 250 businesses in NI that took part in the survey; collectively they employ about 20,000 people.

Some improvement was inevitable after the fastest and deepest decline ever was recorded in the second quarter.

Despite unprecedented levels of government support through the job retention scheme, half of members told the survey they have already or planned to shed jobs.

Around half of businesses said domestic sales and cash flow were getting worse.

About 13% have seen no sign of improvement or are at risk of closure.

Chief executive of NI Chamber Ann McGregor said: "Previous survey findings told us that Northern Ireland's economy entered the Covid-19 crisis in an already fragile state.

"Today's report confirms that while many indicators have improved when compared to Q2 they remain negative, which tells us that business conditions among many local businesses continue to worsen.

"Some businesses have performed well/reasonably during the pandemic (37%) but the majority have been negatively impacted (62%) with many seeing little to no signs of improvement in trading conditions (43%).

"This emphasises the need for continued targeted intervention by government to support the many great businesses in Northern Ireland to survive this unnatural crisis in our economy.

Every quarter the survey asks members how they are feeling about Brexit.

The survey says members concerns around Northern Ireland's future trading relationship with Great Britain.

The government has set up a Trader Support Service to help businesses in Northern Ireland prepare for the end of the transition period.

But this survey suggested only one in three firms have heard of it and only 12% of members who took part

Almost three quarter (73%) said they were concerned about a no-deal Brexit at the end of the transition this year.

'Growing concern'

Many businesses in the survey said the Covid-19 pandemic has disrupted Brexit planning.

Ann McGregor said: "Our members are expressing growing concern about the looming prospect of a no-deal Brexit, which would be detrimental for businesses already dealing with the fall out of the deepest economic recession on record.

"It is clear that there is an urgent need to dramatically improve understanding of future trading arrangements with rest of the UK and increase awareness and uptake of the Trader Support Service.

"Any business in Northern Ireland which currently moves goods between Great Britain and Northern Ireland, or brings goods into Northern Ireland from outside the UK should sign-up for the TSS service without delay."