Irish business sentiment weakened in the second quarter of 2015, according to the latest survey from KBC Bank and Chartered Accountants Ireland.
The sentiment index fell to 123.1 in the three months from April to June from 127.7 in the previous three month period as output growth eased and uncertainty about the global economic backdrop grew.
Increased uncertainty in relation to developments in Greece and Chna as well as an increased focus on the UK's position within the European Union may be impacting on hopes for a "normal recovery, the report stated.
However, one of the highlights of the report was the fact that jobs growth reached a nine year high in the quarter.
About 42% of companies said they had increased their headcount in the past three months - the highest number since 2006. Just 9% reduced their employment levels, the lowest number in the survey's history.
Pat Costello, the CEO Of Chartered Accountants Ireland said that the summer business sentiment survey suggests that the Irish economy is doing well and companies are continuing to increase output.
But he said it also hints that the pace of growth may have eased slightly of late.
"Increased global uncertainty and particularly worrying headlines on Greece and China also seem to be injecting a little more caution into sentiment. Irish business is still moving solidly forward but the survey implies the steps are a little more careful of late," he added.
KBC Bank Ireland chief economist Austin Hughes noted that companies are reporting some increased pressure on pay and hiring costs of late. But he said there is little evidence of higher import costs in the wake of the weaker euro on currency markets.
"This likely reflects the lack of any major global inflationary pressures at present. In turn, this is consistent with responses indicating companies are finding it hard or impossible to pass on higher input costs to their selling prices," the economist added.
