Slight dip in business sentiment

The level of increased output and job hiring among firms is not yet significant enough to suggest the economy has moved to a "notably faster growth trajectory", according to a new survey.

The summer edition of the quarterly business sentiment index from KBC Bank Ireland and Chartered Accountants Ireland — published this morning — shows a marginal dip for the second quarter of 2014, from 122.2 points to 121.8 points, and suggests a slightly slower pace of growth in activity is likely in the current quarter.

The survey notes that job creation is now at its strongest level for seven years.

“The marginal decline in the business sentiment index may be disappointing but it isn’t at all surprising, given the dramatic improvement reported in the second half of last year,” according to Austin Hughes, chief economist with KBC Ireland.

He added that the survey “reflects the reality of a recovery that is healthy but far from a return to the boom”.

Chartered Accountants Ireland chief executive Pat Costello said: “The survey suggests that the majority of Irish companies don’t feel the outlook for their business, or the economy as a whole, is particularly uncertain at present. That said, the majority of those firms focused on the domestic economy said uncertainty was affecting their business decisions. This likely reflects a still early and uneven pick-up in domestic spending.”