Recovery filtering down to the domestic economy, survey finds

The economic recovery is gaining strength and filtering down from exporters to the domestic economy, according to a quarterly business sentiment survey. The latest KBC Bank Ireland/Chartered Accountants Ireland study of 400 accountants in senior positions found this month that 47 per cent reported more business activity in the last three months.

Positive responses
That was the highest number of positive responses since the summer of 2007. The number of companies reporting a dip in activity fell to 15 per cent, also the best result in six years.

The strongest level of positive responses came from the construction and property sectors. More than half of construction firms were busier in the last three months, 10 times the number who said their business was declining.

Austin Hughes, chief economist at KBC, said the report was “very encouraging”, particularly for the construction sector. “The best thing about it is that it now seems that all of the eggs are not in one basket. The recovery is broadening in scope.”