The second economic trends survey of 2020 captures the sentiment of the Cork business community at a time of uncertainty during the rapidly evolving Covid-19 public health emergency. The survey which reports on member experiences during April, May and June questioned the business community on their experience of Q2 and their outlook for Q3 2020 on business confidence, the overall operating landscape, skills, threats and opportunities.
BUDGET 2021
The survey also explored priorities for Budget 2021, investment in sustainable mobility and Covid-19 business supports. Here are is the feedback from respondents.
TOP 3 BUDGET 2021 PRIORITIES
This strategy is an enabler of the sustainable development of the Cork Metropolitan Area and was published earlier this year. It includes an investment strategy worth €3.5bn to 2040, covering walking, cycling, bus, suburban rail and light rail infrastructure investment for Cork.
Grants for small businesses and not loans at 4% even if they are Government backed, is what is needed for this sector. A continuation of the COVID employment package by sector would both encourage businesses to reopen and to employ again. If this dries up so will so many small businesses.” Eddie Nicholson, The Mardyke Entertainment Complex
“Increase the 20% tax band by €5,000 and aim that income up to €50,000 should be at 20% tax by 2024. Also introduce a 45% tax rate over €200,000 reduce capital gains tax to 25% as it would promote sales activity.” Paul Dennehy, Bluechip Financial Consultants Ltd
We need immediate investment in addressing the climate and biodiversity emergency across all sectors.” Alice D’Arcy, STEAM Education Ltd
BUSINESS CONFIDENCE
The latest survey shows an upturn in business confidence from a low of 54% in our Q1 survey at the height of the uncertainty as the Covid-19 emergency escalated rapidly in threat level, to 73% in the latest survey findings. For context, business confidence had been at 93% at the close of 2019.
Q2 TURNOVER AND NET PROFIT
The survey shows that 24% of businesses expect an increase to turnover over the coming quarter 3, with 49% expecting a decrease to turnover over the same period. In relation to net profit, 19% of responding business expect an increase, while 52% expect a decrease.
EMPLOYMENT DATA
Employment Outlook For Q3 2020
CONFIDENCE IN THE IRISH ECONOMY
In Q2 we see an increase in those reporting as confident in the Irish economy at 48%, an increase from the low of 19% in the previous quarter.
TOP 3 THREATS TO BUSINESS GROWTH
