Daily Mirror (Northern Ireland)
Things looking up?
‘Mini recovery but economy still long way from pre-covid levels’
The economy has perked up from the slump in activity witnessed in the second quarter but is a long way from regaining its pre-covid health.
That’s th e message from the Chamber of Commerce and BDO NI which said continued uncertainty around the pandemic and Brexit has dented confidence.
It added there are some signs of recovery – with 19% of companies seeing signs of improvement and a further 30% seeing small signs of improvement.
But ever y economic i ndicator remains down on the same time last year with nearly two-thirds of firms reporting a negative impact from the Covid-19 pandemic.
The widely-watched survey, which canvassed 250 businesses which together account for 20,000 j obs, revealed order books remain weak, particularly for exports, investment intentions have contracted and one in five companies are concerned about repaying Government Covid loans.
Worryingly, half of those surveyed said they have already or plan to reduce head count.
Brian Murphy, Managing Partner, BDO NI, said: “It is important to remember that it is not driven by market failure, instead it is driven by the pandemic.
“The business community has shown its resilience to the challenges it is facing, and it is now encouraging to see these Q3 results have shown a clear move towards recovery.”
Brexit remains a growing concern for businesses given there is only three months remaining until the end of the transition period.
Just two in five businesses said they are currently making preparations for
Brexit compared to two-thirds in the first quarter of the year. NI Chamber chief Ann Mcgregor said the prospect of a no-deal Brexit is worrying.
She added: “Our members are expressing growing concern about the looming prospect of a no-deal which would be detrimental for businesses already dealing with the fallout of the deepest economic recession on record. “Th ere i s an urgent n eed to improve understanding of future trading arrangements with rest of the UK and increase awareness and uptake of t h e Tra d e r Support Service.”
It is now encouraging to see Q3 results move to recovery BRIAN MURPHY BDO NI MANAGING DIRECTOR