| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Dec 29, 2010 - 8:45 AM


Gap between improving ‘traded’ sectors gaining from exports and weakening Irish domestic demand increasing
By Finfacts Team
Dec 29, 2010 - 8:38 AM

Email this article
 Printer friendly page

The gap between between improving ‘traded’ sectors gaining from a recovery in exports and weakening Irish domestic demand is increasing, according to the Winter 2010 KBC Bank / Chartered Accountants Ireland Business Sentiment Survey.

The survey suggests that within healthier sectors the recovery may be broadening as well as moderating in pace. More significantly, the survey points to a pick up in the number of firms in business to business service areas reporting an improvement. This likely reflects the importance of internationally traded services as well as the downstream effects of stronger exports on other Irish businesses.

The fourth quarter survey also saw a notable strengthening of business conditions within the food sector where a strong majority of firms reported a pick up in activity levels in the past three months.

On the negative side, the survey provides evidence that firms focused on construction and Irish consumers found things got even tougher. The number of firms in consumer related areas reporting a weakening in business volumes increased to almost a half of those surveyed from around one third in the previous quarter.

Property related firms also reported a notable recent weakening. These results suggest that the further deterioration in Ireland’s financial health in the past three months that culminated in EU/IMF assistance and a notably larger budget adjustment in 2011 and beyond have taken a toll on household and business spending plans.

2010 ended on an weaker note than many domestic focussed firms might have envisaged.

Main Points

  • Business activity broadly steady at end 2010 but conditions vary widely between sectors.

  • Gap between improving ‘traded’ sectors and weakening domestic demand increasing.

  • Slight improvement expected in early 2011 but divergences set to widen further.

  • Employment falls modestly as downward pressure on costs intensifies.

  • €6bn budget cuts judged about right but business feels tax increases went too far.

  • Government economic forecasts felt to be ‘slightly’ too optimistic but majority feel 4 year plan provides a reasonable framework.

  • 61% of businesses feel EU/IMF assistance improves Irish economic outlook while 16% think it worsens prospects.

  • Slight majority (56%) also feel Ireland’s membership of EMU has helped economy through crisis but 30% disagree.

  • Opinion split on whether ECB has helped or hurt Irish economy.

The survey was conducted between 8th and 16th December and the results presented are based on roughly 360 completed responses.

Related Articles
Related Articles


© Copyright 2010 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March