Ireland 'only EU country to show improvement in sentiment'

Some 72% of Irish businesses expect profitability, revenue and selling prices to improve in 2012, according to a new business sentiment survey.

The 2012 International Business Report (IBR) from Grant Thornton suggests sentiment has declined across the board in Europe, but Ireland is the only EU country where sentiment has improved in the past year.

Some 79% of Irish businesses expect profitability to increase or remain the same, according to the report, while 65% of companies expect investment in research and development to

increase or remain the same.

On the downside, the survey claims it will be a jobless recovery with just 15% of Irish companies expecting to increase employee numbers.

The IBR, which surveys business leaders from 11,500 businesses across 40 economies, shows that 30% of Irish businesses are slightly or very optimistic about the economic outlook for 2012, up from 20% in 2011.

Irish businesses are ranked as the 5th most optimistic of the 13 EU countries surveyed in IBR 2012 (2011, 12th).

While the Irish outlook has improved, the EU region has seen optimism levels fall from 49% in 2011 to 29% in 2012 - a reduction of 20%.

"Irish businesses have dealt with the crisis and a difficult trading environment for a number of years,

whereas other EU countries are only beginning to be affected as euro contagion spreads," said Pat Burke of Grant Thornton.

"Most businesses are now finely honed and three in four expect profits, selling prices and revenue to increase or remain the same in the coming year."