80% of business people optimistic despite downturn

FOUR OUT of five Irish business people are optimistic about their companies’ prospects, despite the slowing economy and credit crunch, a new survey shows.

The study, which will be published today, also indicates that cross-Border trade will continue to increase in the coming months.

The first annual report of the BT/InterTradeIreland Business Monitor shows that, while 78 per cent of the 4,000 businesses surveyed believe the credit crunch will hit the economy over the next year, most say its impact will be moderate.

BT chief executive Chris Clark says that while the findings show the economy is under pressure, most businesses are optimistic about their medium-term prospects.

“Around 80 per cent of businesses are optimistic about their company’s performance over the next three years,” he says. “However, there seems to be a short-term issue because 78 per cent of companies admit the credit crunch is a serious issue, with 77 per cent already noticing a tightening of expenditure by customers and competitors.”

The report also shows that cross-Border trade is growing. Of the 41 per cent of companies involved in cross-Border trade, two-thirds believe the volume of business will increase over the coming months.

Businesses in all 32 counties are concerned at the state of the country’s infrastructure.

However, more than half of them believe planned investment would improve transport over the next three years, and 72 per cent say this will boost North-South links.

InterTradeIreland strategy and policy director Aidan Gough says trading on an all-Ireland basis offers companies on both sides of the Border opportunities to grow their businesses and expand into new markets.

Other findings show that the number of companies that expect profits to increase over the next three months fell from 41 per cent to 31 per cent. The share of building companies that expect profits to fall trebled.

A quarter of businesses surveyed say they have difficulty filling vacancies, with 70 per cent of those saying this is hitting their overall performance.

BT Ireland and InterTradeIreland produce the monitor jointly in association with Northern Ireland Chamber of Commerce and Dublin Chamber of Commerce.

A total of 4,000 companies, ranging from small and medium-sized operations to multinationals, are included in the survey.

InterTradeIreland is an agency involved in promoting cross-Border commerce and removing trade barriers between North and South.