War fallout seen as biggest threat to business

Fallout from the potential war in Iraq is the biggest challenge facing Irish businesses over the next six months according to new Deloitte & Touche survey.

A survey of 303 business managers conducted found 54 per cent believed the war will be one of their top three challenges over the next six months.

Only nine per cent believed Irish businesses will be able to remain largely immune from the fallout of a possible war in the Middle East.

The survey also found that 45 per cent of managers cited the continued slowdown in the US economy as a major challenge along with wage inflation and insurance costs.

Compared to the last six months of 2002, 57 per cent of managers said their confidence in the overall business environment has deteriorated while 53 per cent said they expected economic conditions to deteriorate over the first six months of 2003.

However 41 per cent of managers agreed with the statement that "Ireland's economic performance will show signs of recovery by mid-2003" while 46 per cent disagreed.