Brexit concerns weigh on Irish business sentiment, says BDO

Optimism among Irish businesses fell in the third quarter of this year, reflecting the "considerable" concern around Brexit and its implications for businesses, a survey from accounting firm BDO has found. This was the first decline in optimism since 2012, the survey found.

The Optimism Index, a survey carried out for the past seven years, shows that two-thirds of respondents still believe Brexit will have a “very negative impact” on their businesses. And while consumer confidence around Brexit is broadly more positive, this survey details the disconnect between that position and the business sentiment.

"The results of the latest index only serve to highlight the continuing sense of drift in optimism evident in the Irish economy – the ongoing challenges posed by Brexit, the falling levels of expected business activity, the pressure on profitability, and the static pricing levels all feed into a business environment that is waiting for clarity on Brexit, and the impact it will have on their businesses and on the economy as a whole," said BDO's managing partner Michael Costello.

The optimism index has fallen to levels last seen between 2015 and 2017 while the levels of employment among respondents remain stable. Dublin businesses, particularly smaller businesses, are showing stronger projected employment levels.