Two out of three firms have experienced weaker business activity levels in the last few months of this year.
According to a business sentiment survey by KBC and the Institute of Chartered Accountants, activity has weakened mainly in the construction, food and consumer business areas.
Half of the 400 firms surveyed have reduced their staff numbers, but one positive in the report is that lower inflation is reducing costs for business.
Irish businesses do not expect an improvement in business conditions in the early part of next year. 41% of businesses fear weakness will go on for more than two years, up from 23% in the summer survey.
