Concern ahead of budget measures

Over 70% of firms are viewing next week’s budget as being important to their prospects for 2014, with most more concerned with specific measures within it, rather than the marginal reining in of the overall adjustment.

According to Austin Hughes, chief economist at KBC Bank Ireland, this reflects the fact that the budget affects both the demand for the goods and services produced by many companies, as well as Ireland’s cost base vis-a-vis external competitors.

“For this reason, companies are more concerned about what is done in the budget rather than how much. Only 16% of respondents say that whether the adjustment is €3.1bn or less is key for them, while 70% are focussed on what specific measures might be introduced,” Mr Hughes added.