Business sentiment at highest level since 2006

PAMELA NEWENHAM

Irish business sentiment has reached its highest level in eight years, with almost 60 per cent of firms reporting an increase in business activity over the summer months, according to the latest the KBC Bank Ireland/Chartered Accountants Ireland business sentiment index.

The improvement was broadly based, with all sectors reporting an improvement in business conditions and all the components of the index stronger than in the second quarter.

Some 29 per cent of firms cited the health of exports markets as the key factor in improved sentiment, with cost trends signalled by 18 per cent of those surveyed and access to credit by 15 per cent.

Just 9 per cent of firms reported weaker conditions over the last three months.

KBC Bank Ireland chief economist Austin Hughes said the strongest element in the autumn survey was companies' assessment of their own business volumes in the past three months.

“The recovery seems to be broadening across sectors and firms and a further improvement is expected in the final three months of the year,” he added.

Chartered Accountants Ireland chief executive Pat Costello said the survey results were "very encouraging" in that they show a broadly based pick-up in activity as well as greater business confidence in relation to the outlook for the broader Irish economy.

“Companies’ assessment of Budget 2015 was broadly favourable, with 13 per cent of firms intending to increase their hiring next year as a result”.