THE level of confidence and business activity in the Northern Ireland economy has risen again for the third successive year, a new survey has shown.

Research by mergers and acquisitions specialists, Company Broking Consultants, shows a 17 per cent increase in such corporate transactions last year, with 48 of Northern Ireland's top 300 companies recording a change of ownership. A further 12 mergers and acquisitions have been recorded in 1997, according to the consultants.

The overall level of corporate activity may even be rising at a faster rate, it estimates, as the extent of corporate activity between some private firms is not fully known. The figures, the company says, may also underestimate the level of business activity throughout the economy's various regions.

The mergers and acquisition activity captured by the survey identifies a significant change of focus by Northern Irish businesses, with fewer than half of the recorded transactions being between firms based in the North. The previous survey showed that 66 per cent of all such transactions represented domestic mergers.

More than 40 per cent of the corporate deals in 1996 were acquisitions of companies in Britain and the Republic by groups based in Northern Ireland.

Its survey of 300 Northern Ireland chief executives also showed that the bulk of the mergers and acquisitions were concentrated in core business areas,

The chief executives did, however, report that they were generally less satisfied in 1996 with the performance of the businesses they had acquired compared to that of similar scale acquisitions in the previous 12 months.

The survey also indicates that most acquisitions are opportunistic rather than being part of a long term strategy; they are mainly identified on the basis of informally gathered information.

Many companies said it was more difficult to find suitable acquisitions last year, confirming a continuing strong underlying demand for good acquisition targets.

Although chief executives are generally less optimistic about economic conditions in the North than in the previous year, they still report very positive attitudes to accelerating business growth by acquisition, according to its findings.