More than half of Northern Ireland businesses positive that turnover will grow this year

Local companies have been praised for their “resilience through a protracted period of challenges” after the report found that four out of five members of the Northern Ireland Chamber of Commerce and Industry are trading “well or reasonably”.

Meanwhile less than half of respondents (44%) feel positive about the Windsor Framework’s potential impact on their business, while nearly three quarters (74%) are very concerned about the impact of public spending cuts on the Northern Ireland economy.

The survey carried out by NI Chamber alongside BDO NI focused on the second quarter of 2023 and saw 188 members respond.

Most key indicators in the Northern Ireland survey were positive, meaning that in the second quarter, more firms were reporting increasing export sales, employment growth, confidence around turnover and profits and investment intentions than those reporting any fall.

Fewer manufacturers are reporting price pressures from raw material costs but this still remains high at 73% compared to 92% of manufacturers in the same quarter last year, and fewer firms are also reporting pressure from utility costs and fuel cost pressures have also reduced considerably.

Interest rates are a growing concern in both sectors, with 40% of manufacturers and 48% of services reporting it as more of a concern than three months ago.

Commenting on the survey findings, Suzanne Wylie, Chief Executive of NI Chamber, said: “The findings clearly demonstrate the resilience of business through a protracted period of challenges. It is encouraging to see the stabilisation of business confidence in the first half of 2023, with a strong performance across so many indicators relative to other UK regions albeit that there remain significant challenges to growth in both the NI and UK’s economies.

“However, the most alarming aspect of the findings this quarter is the perceived impact of Stormont’s fiscal problems on the economy and individual firms. It serves as a timely reminder that a sustainably funded, functioning Executive is the missing piece in unlocking Northern Ireland’s potential and driving confidence and growth.”

Brian Murphy, Managing Partner at BDO NI, added: “Positive momentum and consistency are the order of the day and businesses across Northern Ireland are clearly demonstrating both. Considering the difficult conditions many organisations are operating in, achieving any degree of positive momentum really is remarkable and it shows that the business community is continuing to strive for sustainable economic growth.

“Confidence continues to grow, with 62% of companies positive that turnover will grow in the next 12 months, this is up 2% from Q1 2023 and more significantly up 15% on the last quarter of 2022, demonstrating real time progress. This is not to say that businesses are not under pressure, nor does it imply the challenges around recruitment, skills and costs have dissipated. What it does demonstrate is that businesses are learning to operate and grow whilst simultaneously dealing with a range of challenges.

“The local business community certainly does not rest on its laurels. Across the board, businesses have adapted and transformed their offering to meet the changing needs and demands of their market, identifying opportunities for investment and collaboration as they go.”