The Summer 2015 KBC Bank Ireland / Chartered Accountants Ireland Business Sentiment Survey has been released today. It shows that Irish Business sentiment weakened in the second quarter of 2015 as output growth eased and uncertainty about the global economic backdrop increased.
 
The survey showed jobs growth reaching its fastest pace in nine years. So, the upturn is still solid but costs are starting to increase particularly in relation to payrolls. It is also believed that a UK exit from EU would have a marked negative effect on Irish business.
 
The index declined to 123.1 in the second quarter of 2015 from 127.7 in the previous quarter. The nature of the survey means that it is intended to capture changes in the business climate. So, the summer survey points towards a further healthy expansion in Irish business activity in the past three months but the pull-back in the index hints that business conditions have not improved as much as had been envisaged. 
 
Chartered Accountants Ireland Chief Executive, Pat Costello said, "The summer business sentiment survey suggests that the Irish economy is doing well and companies are continuing to increase output but it also hints that the pace of growth may have eased slightly of late."
 
Chief Economist at KBC Bank Ireland, Austin Hughes added, "Companies are reporting some increased pressure on pay and hiring costs of late. However, there is little evidence of higher import costs in the wake of the weaker Euro on currency markets.

This likely reflects the lack of any major global inflationary pressures at present. In turn, this is consistent with responses indicating companies are finding it hard or impossible to pass on higher input costs to their selling prices."

Source: www.businessworld.ie