Irish private sector firms were among the most confident about output growth over the next 12 months, with overall sentiment unchanged since June, according to a new survey by S&P Global Ireland Business Outlook.
Non-wage cost pressures are expected to ease further, while labour costs are predicted to remain high, the study found.
The headline net balance for business activity in the combined manufacturing and service sector was +39% in October.
It remained at the same level as in June and was slightly below the long-run average of +45% since late 2009.
In June, services companies (+42%) were slightly more confident than manufacturers (+36%), data showed.
Business Confidence
Trevor Balchin, economics director at S&P Global Market Intelligence, stated, "The outlook for the Irish economy was little changed since the summer during October, with companies remaining more confident than most of their counterparts in the 12-nation global survey."
Balchin also highlighted that the survey was conducted before the US presidential election.
Irish business expectations were the third-strongest globally, behind Brazil (+42%) and the UK (+41%) in this period.
The eurozone average fell to +17% in October, weighed down by Germany (+10%) and France (+14%).
Irish companies expressed optimism about export growth to mainland Europe, the UK and the US, lower interest rates and inflation, demand from the construction and property sectors, and a focus on technological innovation such as AI and automation.
Other Findings
Overall employment is expected to rise by close to a quarter (+24%) over the next 12 months, with Ireland the most confident on hiring plans in Europe.
Ireland also had the strongest outlook for profitability (+24%) in Europe, according to the survey.
The gap between non-staff costs and staff costs widened to 28 points – the largest since the staff costs data was first available in early 2019.
The non-staff costs net balance fell to +35% in October. It was above the long-running trend of +29% but was also at its lowest in four years.
In contrast, the staff costs net balance eased slightly to +63% in October and was the joint-second highest globally behind the UK with Germany.
Irish private sector firms expect non-wage cost pressures to ease significantly in 2025, but wage pressures are projected to remain high.
