Sebastian Burnside, chief economist at Ulster Bank’s owner NatWest, said: “Last month we said that the November data would give us the first insight into the impact of the UK Budget on firms.

“On an initial look the main effect has been to dampen business confidence.”

The budget included a rise in employers’ National Insurance (NI), a tax levied on company payrolls.

From next April all but the smallest firms will have to pay NI at 15% on salaries above £5,000. The current rate is of 13.8% on salaries above £9,100.

At the start of December, the Northern Ireland Assembly heard that was likely to have a significant impact on the childcare and hospitality sectors.

The Ulster Bank survey also suggests the Northern Ireland private sector was still growing in November.

However, the growth rate was at its weakest since January.

Non-retail services continued to be the best performing part of the local economy.