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Business confidence in Ireland falls to lowest level since October 2020

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Business confidence fell sharply mid-year as companies grappled with an economic slowdown and rising prices.

In the latest Accenture/S&P Global report, the companies surveyed also predicted a drop in earnings for the first time since records began. Businesses are likely to scale back hiring and investment plans if demand slows.

The net balance of operations in Ireland fell sharply between February and June, falling from 55 per cent to 24 per cent.

The downgrade in expectations was the second largest globally, behind only Germany. Downward revisions to growth forecasts were particularly evident in manufacturing, where business confidence was at its lowest since the global financial crisis.

The business outlook is based on a survey of around 12,000 manufacturers and service providers around the world, including 600 in Ireland.

Inflationary pressures proved to be the area of ​​most concern for companies, with some anticipating a recession. Securing material and personnel was also described as a key threat to growth.

In Ireland, however, net employment was 24 percent, among the highest sentiment recorded in Europe. This came despite plans to reduce hiring in the previous report, published in February.

The outlook comes as LinkedIn data showed that hiring numbers in the first five months of the year were 27 percent higher than the same period before the pandemic in 2019.

The companies also said they responded to the rise in producer prices by increasing costs for customers.

“After two turbulent years, it is not surprising that the impact of global events is being reflected in a more volatile business environment,” said Accenture Country Managing Director Alastair Blair.

“The challenge for companies now is to find ways to stay competitive through innovation, investing in technology, and finding the best combination of skills and investing in those skills to achieve long-term sustainable growth,” he added.

https://www.independent.ie/business/irish/business-confidence-in-ireland-drops-to-lowest-level-since-october-2020-41847539.html Business confidence in Ireland falls to lowest level since October 2020

Fry Electronics Team

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