Businesses in Northern Ireland said they had a “steady” performance between April and June, with signs of growth in the economy, according to a new study.
Some 83 per cent said they were trading well or reasonably in the period. Still, cash flow is a concern across manufacturing and services industries according to the study from the Northern Ireland chamber of commerce and industry and BDO Northern Ireland.
The chief executive of the Northern Ireland chamber of commerce, Suzanne Wylie, said the chamber hoped to use these results to influence the decisions of the new UK-Labour government for Northern Ireland.
She said that while it was good to see the business confidence across the economy, the results showed that there were worries about cash flow, particularly in the manufacturing sector.
The study shows that concerns about inflation dropped to 44 per cent of manufacturers in the second quarter, compared with 76 per cent at the same point a year ago.
This reduction was mirrored in the services industry with 40 per cent saying they were worried about inflation compared to 74 per cent in the second quarter of 2023.
Some 58 per cent of respondents were worried about energy costs, down from 69 per cent in the first three months of this year.
On immigration policy, the increase in pay for the skilled worker visa from £26,200 (€30,441) to £38,700 last April impacted 38 per cent of businesses. Overall, 15 per cent of companies said they had been affected by immigration restrictions across the Border as they found it more difficult to get access to labour, Ms Wylie said.
[ Northern Ireland company wins €34.9m cruise ship fit-out contractOpens in new window ]
Some 28 per cent of manufacturers felt they were under pressure to raise prices, lower than in the first quarter when 38 per cent said they were under pressure to do so.
Overall, 46 per cent of respondents said they saw a slowdown in demand, however, this was down on the 56 per cent measured in the first quarter. However, 12 per cent said they experienced a large slowdown, rising from 7 per cent in the quarter.
In total, 185 people responded to the survey accounting for more than 44,000 employees in Northern Ireland.