IBEC: Business sentiment on the rise

Business sentiment has improved in the last quarter.

The latest data from IBEC shows that in the three months to the end of 2010, companies' outlook for their trading future increased.

A strong performance in exports is being credited for the positive outlook, despite a turbulent external market.

"Our members are now much more positive about both their current business conditions and the outlook for their businesses over the coming three months," said IBEC Chief Economist Fergal O'Brien.

"The three-month outlook strengthened from +7 in the final quarter of last year to +19 in the current quarter.

"Understandably, given ongoing concerns around public finances and banking, the majority of businesses remain less confident in relation to the wider economic environment.

"The overall business confidence indicator remained negative at -23 in Q1, but this was an improvement from -32 in the final quarter of last year."

Mr O'Brien said that "one of the major positives" in the survey findings is that job prospects are improving significantly.

"Manufacturing businesses are hiring again and the overall employment index has improved from -13 to -3," he said.

"The onus on the new Government is to get to work quickly and put in place a coherent job strategy," the economist added.

"Their task now is to replicate the positive news on the export front with sustainable growth in the domestic sector."