THE country’s main business lobby group IBEC has called for Government intervention after its latest Business Sentiment Survey shows confidence is continuing to drain out of the indigenous Irish business community.
IBEC last night called on the Government to step into the breach to help stimulate domestic demand and tooffer some relief to Irish businesses that are continuing to struggle in the wake of the recession.
“The continued weakness in the indigenous sectors of the Irish economy highlights the need for Government initiatives to underpin domestic demand,” said Fergal O’Brien, senior economist with the employer body.
What is required is a “well targeted public capital investment programme and an approach to the fiscal adjustment process that promotes consumer confidence and encourages a return to more normal spending and saving patterns,” he added.
On the export front the survey shows that for the third quarter in a row business sentiment has continued to improve.
It shows, however, that this splurge in optimism is to be found essentially in the exporting sector dominated by multi-national companies.
“The results, together with the latest national accounts data, point to the two-speed nature of the recovery,” said Mr O’Brien.
The survey asked firms about their confidence in both the overall business environment and in their own businesses.
It was noticeable that companies “were considerably less negative about their own business than the overall environment,” added Mr O’Brien.
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