Irish firms 'buoyed by outlook for exports'

 There was “a sustained sense of optimism among Irish private sector companies, buoyed by expected improvements in export performance”, the Accenture-S&P global Ireland business outlook survey showed.Picture: Sam Boal/Rollingnews.ie

Irish companies are being buoyed by the prospects of improving demand for their exports and are the most confident of their international peers, but many firms still plan to pass on price increases to customers despite some easing in inflation pressures, a major survey has found.

There was “a sustained sense of optimism among Irish private sector companies, buoyed by expected improvements in export performance”, the Accenture-S&P global Ireland business outlook survey showed.

“Despite the global economic challenges, Ireland’s growth forecast has emerged as the strongest globally,” said  Accenture Ireland country managing director Hilary O'Meara.

There remain challenges around wage pressures, labour shortages, and strong market competition, but there is a lot to be optimistic about.

Inflation pressures from energy and raw material costs are easing, but are still at elevated levels and “Irish companies also intend to push these cost increases through to customers”, according to the survey.

This chimes with the finding of other surveys, including the monthly purchasing managers’ index, which shows that Irish manufacturers are optimistic about the outlook, despite activity contracting.

“Underpinning upbeat growth projections were forecasts for new export opportunities and plans for new product development,” Accenture-S&P said.

“Firms intend to expand product offerings into new international markets with opportunities in Europe looking set to be a particular area of interest for many.” Its survey is based on respondents from 12,000 firms in manufacturing and services around the world.

Meanwhile, ratings firm Fitch has said it has a positive outlook on Irish sovereign debt due to the prospects of large budget surpluses in the coming years.

“Against this background, Fitch expects the favourable budget position to prevail over the rating horizon and the budget surplus is forecast above €12bn in 2024 and 2025,” it said.

The new outlook is not in itself a credit upgrade, but shows that Fitch could be mindful of upgrading its current rating of ‘AA-’.