Business confidence reaches highest level since 2009

17th November 2014

Cork Chamber’s third quarterly economic trends survey of 2014, released this week, reveals the highest level of confidence amongst Cork’s businesses (92.2%) since the Chamber’s economic trends survey commenced in Q1 2009 when confidence levels reached only 51.5%.

The survey, which incorporates responses from sole traders, micro-enterprises, SMEs and MNCs from manufacturing and wholesale/retail to ICT and financial, professional and technical services reveals increases in turnover and net profits to be amongst the likely positive indicators driving high confidence levels.

Discussing the survey findings, Cork Chamber President Gillian Keating stated “Almost six out of ten businesses (59%) reported an increase in turnover over Q3 and 57% reported increases in net profit. Looking ahead to the next quarter, more than half anticipate further increases in turnover (57.2%) and net profit (53%). In terms of employment, the news is equally positive with 40% reporting increases in employee numbers over the third quarter and 40% anticipating further increases over the final quarter of 2014. Currently, 41% of businesses have vacancies advertised predominantly in sales, recruitment, IT and engineering and supply chain/customer service roles.”

However despite the many positives, Ms Keating highlighted how “survey findings reveal specific issues that require monitoring in addition to increasing calls for enhanced supports to enable existing businesses to grow and to incentivise new start-ups. Working capital remains an ongoing issue for more than a quarter of businesses (26.9%) and access to credit remains a problem for almost a fifth (19%).

In terms of Budget 2015, the business response was broadly neutral with almost two thirds (64.5%) describing it as a ‘no-change’ budget for business. Businesses were most positive about the potential impact of Budget 2015 on employment/job creation and consumer confidence with almost half (44.7%) anticipating the budget having a ‘knock-on’ positive impact on employment and 40.7% predicting a positive impact on consumer confidence. Critically, a quarter of businesses believe the budget will have a negative impact on entrepreneurship, while the response was broadly neutral in terms of the budget’s likely impact on growing the domestic economy.

In terms of supports that businesses believe could have been better developed in Budget 2015, strong calls were made for:

• More supportive measures for small businesses and SMES including easier access to working capital funding and grant schemes for expansion;
• More supports for micro-operations in terms of expertise available to them including enhanced supports when starting a new business or exporting to new markets;
• Enhanced supports for the self-employed;
• Further stimulating consumer confidence through greater clarity around Irish water costs for households; and
• Further infrastructure investment to drive regions forward.”

Ms Keating concluded “Findings are reinforcing of wider national trends regarding the overall improvement in the health of the Irish economy and the record confidence level is a solid indicator of the appetite for growth and increased business activity as 2015 approaches. However, to fully realise the existing growth opportunities, further supports and targeted structures are required, particularly for entrepreneurs, start-ups, micro-enterprises and SMEs given the importance of these types of businesses in sparking ‘knock-on’ growth and employment increases across the economy.”

Cork Chamber is the leading business organisation in Cork supporting and representing the interests of approximately 1,100 businesses employing 100,000 people in the region. Cork Chamber has a mandate to develop and promote policy recommendations that create an enabling business environment and support the region’s economic development.

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