Business confidence has fallen significantly among Irish managers over the last six months, according to a new survey. 43% of managers say that their confidence in the overall business environment has deteriorated slightly, while 17% say that it has deteriorated significantly, the survey from Deloitte & Touche says.
The survey also indicates that many business people remain negative about economic prospects for the rest of the year. 38% of Irish business people feel that the environment will worsen slightly over the next four months, while 15% expect a significant worsening.
Consumer businesses, such as retailers, wholesales and food manufacturers, are the most downbeat with 74% expecting a deterioration in the Irish economy.
Falling business confidence is also having a mixed impact on employment levels. 29% of companies say they employ less people now than they did six months ago. 38% say that employment has remained at the same level, while 32% says that their employment levels have risen.
Employment prospects are more positive over the next six months, however, with 35% expecting numbers to rise and 45% expecting numbers to remain at present levels.
The decline in world stock markets remains a key concern for all industries. 57% of Irish managers believe the decline in the stock market will impact on the economy. Concern is highest in the technology and consumer business sectors.
Today's survey also indicates that 65% of business people feel that Ireland is becoming a more difficult country in which to do business. Technology, media and telecommunications firms are the most negative.
'There is little doubt that the Irish economy is much slower than it was last year,' Pat Kenny, Managing Partner of Deloitte and Touche says. 'We can sustain short-term down-turns which we could not have sustained 10 years ago, but it is important that this downturn 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 added.
