Optimism among businesses is rising amid increased profitability, new research shows.
The latest business monitor from InterTradeIreland for the period from October to December last year, reveals that 73% of companies were profitable over the previous 12 months.
This is the highest percentage since 2019 - before the Covid pandemic.
60% of companies said they were in a stable condition, down slightly on the previous quarter.
The amount of companies reporting growth increased to 32% from 29%.
The report shows that most businesses are expecting staff numbers to remain the same over the next six months.
However, 42% of larger SMEs are predicting employee growth over the period.
"With both economies in Ireland and Northern Ireland sitting at close to full employment, we can see from our data that recruitment is one of the top issues for businesses," said Martin Robinson, InterTradeIreland's Director of Strategy.
Attracting the right talent is the top issue for businesses surveyed, followed by energy costs and overheads.
On a positive note, the report indicates that businesses believe the speed of price rises should slow down over the next six months, as inflationary pressures ease.
Almost 60% of companies expect their prices will remain the same, while just 3% predict their prices will rise significantly.
The number of businesses that have hiked prices significantly has halved since the beginning of 2023, from 30% in the first quarter to just 15% in the final quarter.
When it comes to climate change, two thirds of companies said sustainability and net zero is important, but only 20% actually have a plan, while 17% are developing one.
Of the businesses that do not yet have a net zero plan in place, 70% don't see themselves developing one in the next five years.
"It's short-sighted of SMEs not to start to think about the sustainability question," said Mr Robinson.
"The transition to a low-carbon world is lifting technology investment and is attractive to funders.
"Increasingly, larger companies and public sector organisations are seeking green credentials from smaller companies in their supply chains," he added.
He said looking at new ways of doing things can also make businesses more efficient and save money.
