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Roundup-Davy raises growth forecast

Monday, March 04 08:17:13

Davy Stockbrokers has raised its 2013 forecast for the Irish economy following "surprisingly strong" investment spending.

The company believes Irish gross domestic product (GDP) will grow by 1.3 per cent this year, up from its forecast of 0.9 per cent last October.

Third-quarter data from last year showed investment spending, led by capital expenditure on machinery, was up 10 per cent on the year, the strongest expansion since the first quarter of 2007.

The stockbroking firm predicts employment will grow by 0.6 per cent this year, the first year of expansion since 2007, reflecting accelerating private sector employment growth but also a reduction in the pace of public sector job cuts.

However, chief economist Conall Mac Coille said monthly data on Ireland's export performance had painted a worrying picture.

The Irish Times

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In time-honoured fashion the Irish banks appear to have chosen to do things the hard way when it comes to facing up to the losses in their residential mortgage books.

It is only now, with the Personal Insolvency Act hanging over them, that they seem to be showing any real enthusiasm for doing what has to be done. This week they are all scheduled to sit down with the Department of Finance and the Central Bank to agree programmes for working through non-performing residential and buy-to-let mortgages.

To be fair, it should be pointed out that the Government and arguably the Central Bank have been somewhat complicit in the banks' foot-dragging.

It was not until sentiment towards the Irish sovereign appeared decisively to have taken a turn for the better that the Government felt confident enough to push the banks into writing down mortgages.

The Irish Times

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New figures show that 122 companies went out of business in February - 26pc lower than the 166 that closed in February 2012.

The new data, published by insolvencyjournal.ie, reveals that so far this year, there have been 229 insolvencies recorded, a 24pc drop from the 303 in the first two months of 2012.

The statistics show that despite the year-on-year decline in insolvencies, the retail sector experienced a 69pc rise in business failures last month, when 27 firms went bust. That compared with 16 in February last year. Among the companies in trouble was formal-wear chain Black Tie, which had a liquidator appointed on February 1.

The Irish Independent

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According to accounts just filed with the Companies Office by BT Communications Ireland (BTCIL), the company's turnover declined 5pc from E446.7m to E425.7m in the 12 months to the end of March last year.

The directors point out that operating profits during the year increased from E35.3m to E38.2m.

The Irish Independent

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The value of Ireland's fund industry will pass the $2.3 trillion (E1.8tn) mark for the first time in 2013 despite a challenging regulatory and economic backdrop, according to BNY Mellon. The bank's head of offshore, Rachel Turner, has also predicted that Ireland will retain its position as a global leader in fund administration.

"We are still seeing a huge appetite from investors to place money in Ireland," said Ms Turner. She added that large chunks of UCTIS asset flows last year came through Irish vehicles.

"This is down to the fact that Ireland is still seen as a good place to do business from a funds perspective, despite the financial crisis," she said. The Irish Independent