Irish business leaders’ optimism has increased markedly in recent months, a study by the Institute of Directors in Ireland has found.
The Institute of Directors study found that business leaders’ optimism in terms of the Irish economy and their organisations’ future financial performance has increased markedly in recent months.
The Government’s effect on both consumer confidence and business decision-making has also seen notable increases in positive sentiment from business leaders.
“The lifting of many public health restrictions in recent months along with the roll-out of the national vaccination programme are playing their part”
The IoD research for Q2 2021 finds that 61pc of directors are ‘more optimistic’ with regard to the Irish economy compared to 30pc in Q1 2021, a 31pc increase quarter-on-quarter.
In respect of financial performance, the IoD research has found that 71pc of business leaders believe the financial performance of their primary organisation will improve in Q3 2021, an increase of 27pc from 44pc who believed it would improve in Q2 2021.
In addition, 67pc of business leaders believe the financial performance of their primary organisation will improve for the year 2021, an increase of 12pc from 55pc in Q1 2021.
With respect to consumer confidence, 49pc of business leaders in Q2 2021 believe the effect of the Government’s performance to be positive, an increase of 32pc from 17pc in Q1 2021. In relation to the effect of the Government’s performance on decision-making, 38pc of business leaders believed it to be positive, an increase of 21pc from 17pc in Q1 2021.
“We are seeing a resurgence of optimism among business leaders,” said Maura Quinn, chief executive of the Institute of Directors in Ireland.
“Towards the end of 2020, it was evident that positive sentiment was returning. The lifting of many public health restrictions in recent months along with the roll-out of the national vaccination programme are playing their part. Crucially, these positive developments are being mirrored in our key overseas markets and our research reveals optimism with regard to potential market growth opportunities in the EU and US markets, in particular.
“That positivity is also reflected in the finding that only 3pc of respondents signified that they were not expecting any growth in market opportunities during the third quarter of the year. Many of the trends in our research findings have an upward trajectory, which is good news.
“The Government, too, will be encouraged by these findings. Our research has found that business leaders view more positively the effect of its performance on consumer confidence and on business decision-making,” Quinn said.