A survey by InterTrade Ireland suggests the improved economy will lead 60 per cent of small and medium-sized enterprises to invest in their businesses this year, with half of those boosting marketing budgets to capture higher sales.

InterTrade's second- quarter Business Monitor survey, based on responses from 750 firms the Republic and Northern Ireland, found the sectors in which companies are most likely to boost investment are manufacturing and exports. About 37 per cent of businesses surveyed reported an increase in sales over Q2, and this figure rose to 55 per cent for exporters.

The survey found small firms still have worries over cost inflation and collecting late payments.