Irish Business Confidence at a nine year high according to the latest KBC Bank Ireland/Chartered Accountants Ireland Business Sentiment Survey.
The survey reflects the view of chartered accountants working in senior positions (CEOs, MDs and FDs) in Ireland’s leading companies. The Winter 2015 survey was conducted in the first business week of January 2016 and the results presented are based on 440 completed responses.
The KBC Bank Ireland/Chartered Accountants business sentiment index increased to 131.1 in the final quarter of 2015 from 130.8 in the previous quarter. While this was a relatively modest gain, it was sufficient to push the index to the highest level since the survey began in 2006.
Activity levels across firms operating in the Irish economy continued to increase as 2015 drew to a close, however, the pace of growth was only fractionally ahead of the previous quarter.
With two thirds of companies signalling increased business volumes and less than 6% indicating weaker activity, the survey suggests a very broadly based upswing is now evident across Irish based companies.
The most notable development through recent quarters is the increased positivity of businesses focussed on the domestic economy.
The survey suggests the emerging recovery in domestic demand is spreading markedly. In contrast, output increases in manufacturing companies- while still very clear-cut- were less widespread than previously reported and one potentially concerning aspect of the 4th quarter survey is a further uptick in the number of firms reporting an increase in costs in the past three months.
The survey suggests that wages will rise in 8 out of 10 companies in 2016 with just over half of pay rises less than 2%.
About 54% of firms don’t see direct impact on their business from ‘Brexit’ but 42% fear negative effects and only 4% see positive consequences.
Chief Economist at KBC Bank Ireland, Austin Hughes says, "Irish based companies report continuing increases in activity levels and employment at the turn of the year. With similar gains expected in early 2016, business sentiment has risen to a new nine year high.
"Significantly, companies are reporting increases in their business volumes in 2015 that broadly tally with current estimates suggesting Irish GDP grew by close to 7%. So, the sentiment survey suggests that from corporate Ireland’s perspective, recovery is now both strong and broadly based."
Source: www.businessworld.ie
