Business optimism increases in North

BUSINESS optimism is on the rise again in Northern Ireland, possibly due to President Clinton's visit late last year, and manufacturers are expecting to increase their workforces over the next four months, reports the Confederation of British Industry (CBI), in its latest Regional Trends' Survey.

Northern Ireland manufacturers are much more optimistic about their prospects over the coming year, indicating a strong reversal in trend in comparison with last October's survey, notes the CBI.

This sharp increase in optimism may owe more to hopeful expectation rather than recent experience as most firms report only marginal growth in total orders and only small increases in export orders over the past four months. By contrast, expectations are for rapid growth in the next four months.

Growth in output over the past four months exceeded expectations and output trends across Britain as and stocks of finished goods have risen considerably in contrast to the destocking policies in manufacturing industry in recent months.

Employment estimates for the first quarter of 1966 show that firms are likely to be able to continue increasing their workforce. "We anticipate that Northern Ireland will be among those regions where manufacturing industry will increase in the first quarter, against the UK trend," says the CBI.

Increases in average unit costs have slowed over the past four months and are expected to decline during the February May period. Investment intentions remain "rather subdued" with most firms planning to reduce spending on plant and machinery in contrast to planned increases by most manufacturers.

Concern about inadequate net return on capital is cited as the most important limitation on capital expenditure in Northern Ireland, reports the CBI.