Despite major concerns about the strength of sterling, companies in Northern Ireland are more confident about their own businesses and the economy in general than at any time over the past 18 months, according to a survey published yesterday by the Confederation of British Industry (CBI).
The Business Confidence Survey, conducted every four months, found there was a 32 per cent rise in the number of companies in the services and manufacturing sector that expressed confidence in themselves and the economic climate.
This trend reflects a strong rise in market demand in the North (for the first time in three years) and more moderate increases in the United Kingdom, Republic of Ireland and other markets. The strength of sterling continues to be the most serious problem for the majority of survey respondents, with profit margins continuing to fall across all sectors. Increases in raw material prices, particularly plastics, are worsening the situation.
The skills shortage, particularly in the IT sector, is also causing difficulty for many companies, the survey said. Engineers, especially in the fields of electronics and manufacturing, are difficult to source.
The average of pay increases reported was 3 per cent. Ms Deirdre Stewart, assistant director of CBI Northern Ireland, said the rise in confidence was undoubtedly linked to the establishment of the new Executive .
Ms Stewart said that while many exporters had adapted to the currency differential, the strength of sterling was still a major problem for them. The 63 returns to the survey cover just over 20,000 employees. Of the companies involved, 47 were from the manufacturing sector, 15 were from the services sector and one was a financial institution. The next survey will be conducted in four months time.
A new initiative aimed at giving small and medium-sized Northern businesses information and basic training in adapting to the challenges of e-commerce was unveiled yesterday.
A total of 1,500 places will be available on the programme, costing £25 sterling per person. Any small to medium-sized organisation (less than 250 staff) can apply for two places on the scheme. A number of one-day courses will be held throughout the North.
