Business sentiment quarterly survey - sentiment May 2011

Managers’ assessment of the business environment in Ireland is continuing to improve steadily. The current conditions index climbed to -17 in Q2 2011 from -23 and -40 in Q2 2010. The forward-looking index of expectations in the coming three months increased to -13 from -17 in Q1 and -32 in Q2 2010.

It is clear that managers still view the business environment as challenging but that the outlook is gradually improving.

Own business confidence stabilised in Q2, with only very marginal declines in either the current or forward-looking indices. Managers’ confidence in their own business has been positive for four consecutive quarters, highlighting the divide between individual company performance and Ireland’s institutional struggles, but this gap appears now to be narrowing.