Business confidence eases

A new survey of Irish small and medium sized businesses, which make up 97% of Irish enterprises, reveals an easing in confidence levels compared to two years ago.

The annual O2 Business Survey finds that 29% of firms are more confident about the coming year than they were last year, compared to 43% two years ago and 33% last year. The number of firms which are less confident has risen from 10% two years ago to 17% this year.

“Overall Irish SMEs remain optimistic but this year’s survey finds that cost pressures and competition remain the major threats,” said Billy D’Arcy, Head of Business Sales & Services, O2 Ireland.

“This year’s increase in interest rates, fuel prices and other costs may have dampened expectations compared to two years ago.”

However, the jobs outlook remains positive with 39% of Irish small and medium sized businesses expecting to increase headcount, up from 31% last year. Only 3% expect to shed staff. 39% of firms say it is more difficult now to hire suitable staff with just 15% indicating that this is not a problem.