Brexit prompts largest drop in optimism since 2010

The drop in sterling following the UK decision to leave the EU is now the main risk facing the Irish economy and has led to the sharpest fall in business sentiment since the dark months before the bailout in 2010, according to a major survey of business confidence.

Since the unexpected outcome of the June 23 vote, sterling has slumped 13% against the euro, making it more difficult for all types of Irish businesses who employ tens of thousands of people to sell their goods and services profitably across the Irish Sea.

The relatively high level of sterling ahead of the referendum – the UK currency was trading as high as 69 pence against the euro nine months ago – helped provide a significant boost to the economic recovery here and persuaded small exporting firms in particular to hire more staff.