IBEC - Newsroom

IBEC, the group that represents Irish business, today released the finding of its sentiment survey for Q1 2010, which shows that while many companies are still uncertain or pessimistic over the operating environment, there has been a marked improvement in sentiment.

Results of the survey show that 17% of companies expect the business environment in three months' time to be good or very good, compared with only 6% in Q4 2009. The share expecting the environment to be poor or very poor is down to 49% from 62% in the previous quarter.

Companies’ sentiment in relation to their own business has also improved. In the first quarter of 2010, 25% rated their own business as ‘good’ or ‘very good’, compared with 17% in the last quarter of 2009. The share rating their business as ‘poor’ or ‘very poor’ has declined to 41% from 52% in Q4 2009.

Though the outlook in relation to employment has improved, more companies still expect to decrease employee numbers (29%) than expect to increase staff (16%). The labour marker appears nonetheless to be stabilising; a year before, in Q1 2009, 52% of companies expected to decrease employment, while only 9% expected to hire additional staff.

Commenting on the report, IBEC Director General Danny McCoy said: “The results of the IBEC business sentiment survey tally with other recent positive data, which signal that the business sector has turned a corner. Enterprise will lead the economic recovery. The challenge now is to ensure that these positive indicators translate into to a sustained recovery that will lead to jobs growth.

"Recovery is contingent upon businesses returning to growth and recruiting new staff. Unless this happens, not only will the public finances continue to deteriorate, but we will undermine the progress that has been made in stabilising the banking sector. The global economic recovery is already lifting Ireland's export sector out of recession. A recovery in the domestic economy is the next step.

"To drive growth and job creation the Government must now set out an ambitious capital investment programme. Businesses are eager to get involved and invest, but this is proving difficult in the absence of an up-to-date plan."

• Sentiment Survey Q1 2010 - Business Confidence.pdf - 444 Kbytes