The latest quarterly business survey from InterTradeIreland points to more subdued economic sentiment in the third quarter of 2025.
The survey, which is the biggest across the island, reveals that the proportion of firms reporting growth is 28%, the lowest level since 2018 while the number describing their position as stable has climbed to 64%.
InterTradeIreland said the rise in stability signals a change in tone - momentum has slackened, and companies appear to be prioritising resilience and operational certainty over rapid growth. This reflects some of the financial pressures in the three months from July to the end of September as business profitability edged lower.
Today's survey show the main concerns for businesses included energy costs, rising overheads, recruitment challenges and global trade uncertainties.
Its broader data shows that, while sentiment has softened across the board, the impact is uneven. Larger firms and those active in export and cross-border trade outperform their peers on all the key measures, including growth, profitability, and sales.
But 59% of SMEs also said that their confidence, negotiation skills, problem solving and resilience has improved because of their cross-border experience.
InterTradeIreland's Director of Strategy, Martin Robinson, said it was important to note that today's survey reflects a lack of pace, not a downturn in activity.
"It points to a cautious business environment. We know that SMEs have had to navigate persistent cost challenges against the backdrop of a globally uncertain trading environment. InterTradeIreland's Trade Hub and innovation supports are designed to help SMEs address these concerns.," he said.
Enterprise Minister Peter Burke said that the data shows exporting is vital for SMEs, and cross-border trade is an easy first step.
"Energy costs, rising overheads, recruitment challenges, global trade uncertainties, and increased concern about weakening demand are the top issues for businesses. Yet, when it comes to cutting costs, most SMEs are standing still with the survey indicating that 70% are taking no action," he said.
"Just 13% have introduced energy or sustainability measures, and a mere 4% have explored technology or automation in the past six months," he noted.
Northern Ireland's Economy Minister Dr Caoimhe Archibald said that as the backbone of the economy, he is determined to ensure that SMEs have the help available to succeed.
"There are a number of supports available both through Invest Northern Ireland and InterTradeIreland to help businesses optimise their operations. In addition, with the benefit of dual market access and the cross-border market, I would encourage SMEs to avail of those opportunities as routes to new customers and new growth," she added.
