MOST senior Irish business executives expect the economy to continue performing strongly this year, helping to boost sales and to create employment.
The results of a newly compiled quarterly business confidence index have shown that seven out of 10 senior executives are predicting that turnover will increase in the next 12 months, while almost a third expect to take on additional workers over the same period.
The latest confidence index, compiled by the Bank of Ireland in association with The Irish Times, found that the generally buoyant economic forecasts from the Economic and Social Research Institute (ESRI) and the international Organisation for Economic Cooperation and Development (OECD) were shared by Irish business leaders.
Against a background of continuing low inflation and historically low interest rates, most believe the prospects for the Irish business community remain bright.
The survey reflects the views of chief executives, and finance directors from 190 of the Republic's largest companies, operating across all sectors of the economy. It will be conducted quarterly.
While 71 per cent believes sales will rise further, 18 per cent anticipate static turnover, with 11 per cent forecasting lower turnover. Despite the difficulties created for exporters by the rising value of the pound against sterling the index suggests that confidence among exporting firms remains high.
Six out of 10 companies involved in the survey, said they expected their exports business to increase over the coming year.
A quarter indicated that their export performance was likely to stay largely unchanged on the current year while just 13 per cent were braced for some decline in export sales.
The results of the survey suggest that these generally positive expectations are rooted in the belief that the general economic situation will remain stable in the coming months.
It shows that six out of 10 companies expect to be able to maintain current price levels for their company's goods and services this year. A quarter of senior executives indicated they would be able to achieve some price increases. Just 17 per cent said their prices would fall to some degree, in relative terms.
The survey suggests that employment will continue to increase in the months ahead. However, it indicates that in many cases extra output and export sales are being achieved without increasing employment levels.
Almost half of the executives said they expected employment to stay the same this year, while a third predicted that they would be recruiting some new workers. Close to 20 per cent, however, felt there could be some reduction in their workforce.
Overall, the survey highlights an air of optimism among the business sector about the state of the economy.
Two thirds of those surveyed indicated that they felt the employment prospects for new graduates were better than a year ago, while just under 30 per cent said the situation was unchanged. Just 5 per cent said the graduate employment situation had worsened.
And there is still an air of caution about their personal position. Some 55 per cent of the senior executives, asked what they would do with a windfall of £5,000, replied that they would "save it".
