Three out of five businesses across Ireland reported a drop in turnover in the latest survey to show the impact of the recession.
The latest InterTradeIreland Quarterly Business Monitor, billed as the biggest business survey to cover the whole of Ireland, showed business in the Republic continues to be harder hit by the downturn.
The survey confirmed companies in the Republic are continuing to suffer more than North, reporting a drop in turnover of 72 per cent compared to 44 per cent.
The sectors worst affected are manufacturing, construction and the hospitality industry.
But the survey of businesses across the island for the second quarter of 2009 indicates that the economic decline had bottomed out.
InterTradeIreland’s Director of Strategy Aidan Gough said: “The emerging picture points to a U-shaped recession — the question now is how wide the trough will be?
“Almost half of companies (49 per cent) have revised targets downwards, 56 per cent have renegotiated professional or supplier costs, and 58 per cent have sought to reduce staff costs in the last quarter.
“In addition, just over two in five businesses (41 per cent) overall have reduced their prices — a much higher proportion in the south (60 per cent) than in the North (22 per cent)," Mr Gough said.
“Restoring competitiveness is the biggest challenge facing firms and they are currently seeking to reduce costs across the board in order to be able to take advantage of any upswing.”
The survey, involving telephone interviews with 1,000 owner/managers was carried out last month by Millward Brown Ulster and covers the period April to June 2009.
PA