Irish business confidence continues to fall

BUSINESS confidence in Ireland continues to fall, according to a new survey.

Over the past six months confidence among Irish managers has fallen significantly, the latest survey by Deloitte & Touche shows.

However, the world’s top central bankers expect the global economy to pick up speed next year. Bank of England governor Edward George said the turmoil in financial markets has hurt growth prospects this year, but he forecast a gradual pickup next year.

In Ireland, confidence in the overall business environment has deteriorated slightly, according to 43% of business managers, while 17% say that it has deteriorated significantly, when compared to the last six months of 2001.

Many business people remain negative about economic prospects for the remainder of the year, with 38% of Irish business people feeling they will deteriorate slightly over the next four months, while 15% expect a significant deterioration.

Consumer businesses such as retailers, wholesalers and food manufacturers are the most downbeat about the Irish economy’s prospects, with three out of four (74%) expecting deterioration.

Deloitte & Touche managing partner, Pat Kenny said there was little doubt that the Irish economy was much slower than it was last year. “We can sustain short-term down-turns which we could not have sustained 10 years ago, but it is important that this downtown is not prolonged. The fundamentals of the Irish economy are very strong and we are well positioned to benefit from the expected upturn in 2003,” he said.

Falling business confidence is having a mixed impact on employment, with 29% of companies saying they employ fewer staff now than they did six months ago; while a slightly greater number (32%) say employment in their company has risen; and 38% say their employment level remained the same.

Employment prospects over the next six months are positive, however, with 35% expecting employee numbers to rise and 45% expecting the same level.