Business confidence has fallen significantly among Irish managers over the past six months, according to a survey.
Over 40 per cent of business managers say their confidence in the business environment has deteriorated slightly, while nearly one fifth say that it has deteriorated significantly in the last six months, reports the survey by Deloitte and Touche.
The survey claims many business people remain negative about economic prospects, with over half expecting a further disimprovement for the last four months of the year. Fifteen per cent of these expect a significant deterioration.
Consumer businesses such as retailers, wholesalers and food manufacturers are the most downbeat about prospects for the Irish economy, with three out of four expecting deterioration.
Employment prospects over the next six months are more positive, however, with 35 per cent expecting employee numbers to rise and 45 per cent expecting employment to remain at the same level.
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Managing partner of Deloitte & Touche Mr Pat Kenny said: "There is little doubt that the Irish economy is much slower than it was last year. We can sustain short-term downturns which we could not have sustained 10 years ago, but it is important that this downtown is not prolonged. The fundamentals of the Irish economy are very strong and we are well positioned to benefit from the expected upturn in 2003".
The decline in the stock market is a key concern for all industries. Fifty-seven per cent of Irish business managers agreed with the statement that "the decline in the stock-market will impact on the economy", with 37 per cent saying that they "agree slightly" with the statement. Agreement is highest in the technology and consumer business sectors.
"The stock market's roller-coaster ride has done little to bolster confidence in the economy", said Mr Kenny.