Modest expectations for the coming months suggest that only a moderate recovery is in place, the latest business survey shows. The IBEC/ESRI study found that output expectations, which had shown a weak but steadily improving trend in the first quarter, moderated in April when they were less robust.

Weak order books improved marginally but new orders showed some reversal with the food sector in particular showing significant softening. Export expectations, which had been on an upward track, dropped back as most sectors registered a less certain outlook.

IBEC also found that the outlook for employment was still poor. The office and data processing industry was the only sector anticipating an increase in employment as most other sectors expected employment to decline.

The survey also found that selling prices were showing signs of a pick-up, particularly in the consumer goods sector. IBEC again warned that it was imperative that wage increases moderated as there was a serious danger of a wage/price spiral developing.