The first quarter of 2017 turned out better than many businesses had expected according to the latest KBC Bank/Chartered Accountants Ireland business sentiment survey.
Of the 300 plus chief executives, managing directors and finance directors who responded most reported that activity had picked up between January and March.
The business sentiment index climbed to 110.6 in spring 2017 from 104.6 in the previous quarter.
This marks the third successive increase in the index, following a sharp likely Brexit related weakening last summer.
As major uncertainty persists in regard to the global and indeed the domestic economic outlook, producer confidence remains some way below the levels seen in late 2015 (131.1), but the spring survey shows Irish business sentiment is now on an improving trajectory.
Sentiment has risen strongly since last summer when it fell following the Brexit vote.
The survey reveals significant differences in companies’ understanding of the implications of Brexit for their businesses.
Just 21% of firms believe they have a strong sense of the consequences of Brexit for their activities, while a further 53% of companies report they have some sense of what Brexit might mean for their operations.
Two out of five companies said they had already taken action related to Brexit, including putting measures in place to deal with currency volatility.
Just over a quarter of businesses, however, said they still had no sense of how Brexit might impact on them.
Austin Hughes, Chief Economist at KBC Bank Ireland, who carried out the analysis, said: "Although Brexit concerns are felt widely, both the expected impact and the level of preparedness for Brexit vary widely between companies even in the same sector.
"Only 21% of firms say they have a strong sense of the likely impact of Brexit on their business, but it is concerning that 27% have little sense of the potential effects.
"While 40% of companies have already taken action, this includes those reacting to the impact of Sterling weakness on their business."
