The mood among businesses points towards positive growth in GNP in the second quarter, a new survey by KBC Bank/Chartered Accountants Ireland shows. GNP - the measure of the economy which excludes multi-national profits - continued to fall in the first quarter, according to recent CSO figures.
Increased business activity suggests modest growth is under way, the quarterly Business Sentiment Survey found.
Fewer firms said they expect activity to decline, but no great surge is expected.
Manufacturing and business services remain the main factors in the improvement, but the construction sector is still suffering.
Job cuts are not over, but they are far less widespread than previously, businesses said.
69% of firms said they cut pay in the past two years, but only 13% in the past three months. 36% of companies said the weaker euro had helped business, while 23% said it hurt.
While businesses are becoming more optimistic, recovery is not being felt by all.
'It is very clear that the improvement is relatively modest and is not being seen across all companies or sectors,' Paul O'Connor, President of Chartered Accountants Ireland, said.
