Domestic economy recovery improving business confidence — IBEC
Business confidence improved strongly at the start of 2013 with most indicators in IBEC’s latest business sentiment survey climbing to the highest levels since 2009.
Sales and order book indicators point towards growth and one in four managers indicated that they would be hiring new employees in the coming quarter.
IBEC chief economist Fergal O’Brien said the improvement in confidence was mainly due to recovery in the domestic economy.
“Consumer spending and business investment made a positive contribution to growth in the second half of last year and CEOs expect this trend to continue into 2013. The Irish economy is clearly re-balancing and it is very positive to see the sentiment readings for both domestic and export activity in positive territory in the first quarter of this year.
“Most importantly, business performance indicators – sales and order books in particular – are pointing towards growth. Both domestic and export sales outlook improved in Q1, with domestic sales expectations reaching its highest reading to date at +7 and export sales reaching +35. In line with the improvement in sales expectations, the index for order books rose to +21 from the +15 recorded at the end of last year.”