Increased uncertainty over the euro zone is taking its toll on business confidence, according to business lobby group Ibec. Its business sentiment survey of 400 companies shows confidence in the Irish business environment weakened in the second quarter of this year.
The survey, carried out before the recent EU summit, found a decline in domestic sales expectations between the first and second quarters of 2012. Managers’ confidence in the business environment and expectations about profitability also inched down from the first quarter.
On a bright note it found over 30 per cent of hospitality firms plan to increase staff in the coming months, while strongly performing tech sectors also plan on adding staff.
Ibec chief economist Fergal O’Brien said: “Concerns about the euro zone crisis increased in Q2 and this affected activity and confidence in both the domestic and export sectors.”
He added: “Weaker economic data from Europe remains a worry, but the passing of the fiscal stability treaty and the positive outcome from the EU summit should help support confidence over the coming months.”