A study of almost 1,000 Irish small and medium enterprises (SMEs) has found that 60 per cent of them expect a negative reaction from the British vote to leave the European Union.
There were decreases in 10 out of the 12 economic indicators tracked for the lobby group Isme’s quarterly business trends survey, for which the results for the first six months have been revealed.
The study was conducted by Isme in the first week after the Brexit vote, while businesses were still processing the shock of the result. A third of the respondents are based in Dublin, with the rest of the 945 businesses surveyed spread around the rest of the country. About 90 per cent employ fewer than 50 staff.
Indicators
Indicators including business confidence, profitability and current employment all dropped to their lowest level since spring 2013, according to Isme.
Broken down by sector, the retail industry proved a mixed bag. Despite the overall drop in confidence, the investment indicator for the sector remained in positive territory.
Most indicators were ahead in the manufacturing sector, although current employment levels were down. Confidence in the exporting sector was also reined in, as Isme warned the sterling fluctuations will continue to have a big impact. Brexit is the biggest concern for more than a third of exporters.
Confidence in the services sector was most affected by the vote, with 11 of the 12 indicators down.
"The initial post Brexit shock, with the sterling drop in value have combined with the ongoing increasing business costs, continuing difficulties in accessing bank finance and late payments to reduce SME business confidence," said Mark Fielding, chief executive of Isme.
He warned that competitiveness needs to be maintained.
Meanwhile, the so-called “living wage”, the minimum said to be necessary by trade union-linked groups for an acceptable standard of living, remains unchanges at €11.50 per hour, according to the group that has calculated it since 2014.
The Living Wage technical group said gains by workers from tax reductions via the universal social charge were wipped out by increases in rent.
