Inflation key concern for business

INFLATION is the number one concern of Irish business, the IIB Bank/Chartered Accountants Business Sentiment Survey results for summer 2007 reveals

“The key concern for Irish business remains the pace of increase in costs. The survey results suggest cost increases are exceptionally broad-based across the business spectrum. Once again, the vast bulk of companies; some 76%, report an increase in costs in the past quarter with virtually no significant cost decreases evident (only 2% of respondents said costs have fallen of late),” the report’s authors state.

And they point out that “worryingly, there is little indication that cost inflation will ease in the near term”. When asked about the outlook for costs, three out of four firms again reported an expectation of higher prices with just 3% of firms expecting costs to ease.