Small business group ISME says its latest survey shows that the sector is experiencing 'severe difficulties', with exports particularly hard hit.
The quarterly trends survey for the first three months of this year covered more than 600 companies.
ISME describes the downturn in exports over the last three months as 'frightening'. A net 43% of companies reported that the value of their exports was down on the same period last year, compared with a net 17% in the previous survey.
75% of companies were less confident about future business prospects in the period. Though this was a marginal improvement from the 79% three months earlier, it compares with 47% at the same time last year. Distribution and manufacturing were the most pessimistic sectors, followed by construction and retail.
69% rate current conditions as poor or very poor, with only 16% expecting an improvement in the next 12 months.
56% of the firms employ fewer people than at the same stage last year. The figure for construction was 83%, but ISME says job losses are widespread in all sectors. Only 5% of companies expect to increase job numbers over the next 12 months, with 42% expecting cuts.
ISME describes the fall in companies' sales as 'seismic'. Only 4% of companies expect their sales to increase in the next 12 months, while just over three-quarters expect profits to fall. 56% of firms have had orders cancelled in the first quarter, with more than three-quarters of the cancellations coming from local firms.
Asked to name their biggest immediate concern, 37% of firms cited economic uncertainty, 24% reduced orders, and 21% 'Government inaction'.
