Small and medium sized firms are less optimistic about the business climate than in pervious years, according to an Isme survey released today.
It found that 28 per cent of the 500 respondents are less optimistic about business prospects over the next 12 months compared with the previous 12 month period.
This decline in business confidence is "a serious cause for concern as it impacts negatively on employment and investment prospects", the Isme said in a statement today.
In the second quarter construction companies were the least optimistic with 41 per cent of companies in this sector less confident than they were 12 months ago.
In contrast, the services sector was the most optimistic with one-third confident about future business prospects.
Some 20 per cent of those firms surveyed said they had increased their staff levels over the last 12 months.