Businesses in Northern Ireland have grown in confidence and expect to increase both turnover and profitability in the next year.
That’s according to the latest survey from the Northern Ireland Chamber of Commerce and Industry (NI Chamber) and BDO which showed the mood amongst its membership base has improved significantly as inflationary pressures begin to ease.
Nearly two thirds of those surveyed were positive around growth, a jump from just 47% in the same survey carried out at the end of 2022.
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They said an easing in energy costs has been noticeable, although some said the relatively still-high energy costs are proving a struggle. Similarly, labour and raw material costs remain a burden and have forced some to raise prices.
However, despite the challenges, the recovery in sentiment is stark and comes after a sharp decline in business confidence in the first quarter of 2022.
“Three years of economic challenges including EU exit, the pandemic, global supply chain crises, inflation and political instability have all taken a significant toll on our members, so it is encouraging to see sentiment improving, albeit from a weak base,” Ann McGregor, Chief Executive, NI Chamber said.
Offering further encouragement is the potential of an agreement around the Northern Ireland Protocol, something the majority of businesses said was key to unlocking the region’s economic potential.
Ann McGregor called on local politicians to focus on providing leadership and making the most of the opportunities which the Windsor Framework offers.
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“What matters now is that policymakers commit to an absolutely razor-like focus on economic growth – that includes listening to businesses on how to drive it,” she said. “We must capitalise on the opportunities offered by the Windsor Framework and ensure that operational challenges are minimised.
“Of course, that is just one part of the jigsaw; for optimal growth businesses need a restored, functioning Executive to support them in attracting and retaining the best people, with the right blend of skills. Helping businesses tackle the skills challenge is just one of the many reasons we need to see the devolved institutions restored urgently.”