Positive business outlook for 2002 - survey

Confidence is high among Irish businesses facing into 2002, according to the latest Irish Times/Ulster Bank business survey.

The quarterly survey of 100 Irish companies indicated 63 per cent of companies expect their business to grow and only 2 per cent anticipating a decline. The MRBI conducted the survey last week.

There was positive news on the jobs front with 95 per cent of businesses predicting job numbers would increase or remain stable.

Although 42 per cent of respondents expect business prospects in general to improve, concern was expressed that the European market remains fragile.

The smooth euro currency changeover was confirmed by those polled with only 11 per cent reporting "slight problems".

Ulster Bank head of economic research Mr Pat McArdle said "this outcome has surpassed all expectations".

"The introduction of the euro was well prepared, reflecting the herculean efforts of those in the front line - notably retailers and banks - the adaptability of the public and the extensive information campaigns undertaken," he added.

Britain’s entry into the euro was forecast by 97 per cent of businesses - 75 per cent of which also predicted the Irish public would take up to a month to adjust to the euro.

While 93 per cent of those surveyed claimed they had not introduced price changes following the euro changeover, 57 per cent of companies believe ordinary shoppers will lose out due to rounding up of prices by retailers. Thirty-six per cent say shoppers will not lose out.

Property prices will stabilise, according to 47 per cent of those questioned; 33 per cent believe prices will fall further.

Where interest rates are concerned, 48 per cent of businesses expect stability, 32 per cent expect further cuts and 17 per cent anticipate rates to be increased.