Republic suffers more in slump

BUSINESSES in the South are suffering far more than those in the North resulting in more jobs being slashed.

A survey conducted by cross-border business development body InterTradeIreland found 72% of companies in the South said turnover was down over the last three months compared with 42% in the North. The sectors worst affected were manufacturing, construction and retail distribution.

Just 14% of firms in the North cut jobs in the last three months compared with 38% in South.

In order to attract customers 60% of firms in the South have reduced prices compared to 30% in North.

InterTradeIreland’s strategy and policy director Aidan Gough said: “The picture across the island is of a marked differential emerging in business performance North and South.

“There are signs that the recession is bottoming out in Northern Ireland where fewer firms reported falls in turnover than last quarter. However, southern companies continue to be more pessimistic.”

Firms said labour and energy costs and rates were the biggest challenges the face.

The economic downturn is having a positive impact on 5% of businesses surveyed with the majority of these firms based in the North.

Half of businesses said that it was taking longer for their customers to pay, while a similar number who had successfully applied for credit claimed that the process was more difficult and took longer.

One in three southern companies said they managed to get just a proportion of what they had applied for.

“It is too early at this stage to make any predictions regarding the timescale for economic recovery. The results of our next survey are due in July and will give us a clearer picture.

Northern firms are more optimistic, with 27% expecting better turnover figures in the next few months compared with 11% in the South.

The survey was conducted among 1,000 firms and was undertaken last month and covers the period January to March.