Businesses predicting a slowdown
Just over one-third of businesses on the island, both North and South, experienced turnover growth in the third quarter of 2007, October-December.
But growth is slowing across the island compared to the figures for the first quarter of 2007, say 40%, and for the second quarter, predict 36%.
While business sentiment for the current quarter, January to March, remains high at 41%, there has been a visible downturn in the construction sector in the figures for the final quarter of 2007, with just 25% of construction companies recording an increase in turnover.
Financial expectations for the current quarter vary slightly between the Republic and Northern Ireland with businesses in the Republic expecting a 37% business turnover increase compared to a 44% increase in the North.
Some 30% of businesses throughout the island experienced an increase in profitability in the third quarter with the service sector remaining more upbeat about a profitability rise than the manufacturing and construction sectors.
Growth in employment is currently slowing with 17% of businesses experiencing an increase in employment in the third quarter, compared to a 20% increase back in April 2007.
Nonetheless, most businesses, 84%, remain optimistic about their general performance over the next three months.
When asked about Government policy, 37% of businesses expect their respective governments to improve the commercial environment over the next five years.
Article courtesy of The Evening Echo
