A new business sentiment survey indicates that the worst is over for the economy, but that few firms expect anything approaching a dramatic recovery in the early part of 2010.
The Winter Business Sentiment survey, produced by KBC Bank Ireland and Chartered Accountants Ireland reveals that Irish businesses are reporting that conditions remain quite tough, but they are altogether better than they were 12 months ago.
The survey also suggests that a gradual turnaround is emerging, but that conditions vary widely across sectors.
Today's survey also indicates that the December Budget has given a significant boost to business confidence. 'The majority of those surveyed feel that the Minister got the balance right between tackling the public finances and not damaging the economy,' commented Tom Fitzpatrick, President of Chartered Accountants Ireland.
'Indeed, three times as many firms think the Budget will have a positive impact on Irish economic prospects as take a negative view,' he added.
The chief economist at KBC Bank Ireland, Austin Hughes, said that softer activity has caused a further fall in employment. However, he added that the scale of the cuts as eased slightly and he also noted a slight pick-up in the number of firms increasing their payrolls.
'Although this has been a very painful process, the sentiment survey suggests the Irish cost climate has adjusted very sharply in the past year and there are tentative signs from the employment component of the Winter survey that businesses believe the bulk of the adjustment to the downturn may be behind us,' he added.
