High energy costs are forcing businesses to stall plans to hire workers and delaying investment in expansion, according to a new survey.
Irish energy bills are among the highest in Europe, with businesses and homes having endured increases this year following the outbreak of the US-Iran war.
Seven out of 10 business managers say increased energy costs are at the head of their list of concerns going into the winter, according to accountants Azets Ireland.
Almost half of those surveyed by the firm say the problem has prompted them to delay investment plans, while 54 per cent have stopped hiring new workers in the face of the increased cost.
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Irish businesses face “significant cost pressures” as they enter the final months of the year, said Azets Ireland chief executive Neil Hughes.
“Rising energy prices, economic uncertainty and continued geopolitical volatility are making it much harder for firms to plan and grow with confidence,” he said.
“The findings highlight the real-world impact these pressures are having.”
He warned that many small and medium-sized businesses are absorbing big cost increases while trying to protect razor-thin profits.
However, close to nine out of 10 firms are optimistic that they will grow over the next year, the Quarter Three Azets Barometer shows.
[ Business optimism on the rise despite interest-rate and geopolitical fearsOpens in new window ]
The firm questioned 150 companies across Ireland in July and August for the survey.
Azets Ireland is part of the international Azets group, which has operations in eight countries. The firm focuses on small and medium-sized businesses.
