Irish business confidence has improved by 8% in Q3 of 2020, its highest level since the middle of 2019, according to a new global survey by the Association of Chartered Certified Accountants.

However, the findings reveal that the rise in confidence was modest when compared with the international average, which rose by 19%.

The report reveals that Ireland's orders index increased by 5% representing a one-year high, however, employment and capital spending measures were broadly unchanged compared with Q2.

During the quarter, Irish GDP fell by 6.1% from Q2, one of the best performances in the EU.

However, domestic demand fell sharply, though experienced something of a soft landing with the economy benefitting from continued success in exports and international trade.

Commenting on the findings, Caitriona Allis, Head of ACCA Ireland said the challenges of the pandemic and Brexit remain significant for the Irish economy as we look towards the end of 2020.

"International trade, notably exports are playing a vital role in propping up the wider economy, and whilst any rise in confidence should be welcomed, it must be caveated by the potential implications of Brexit and Covid in the short to medium term," she said.