THE performance of the Stormont Executive is among key concerns of businesses looking ahead in 2016, according to a report.
Along with competition, it was the main worry for firms which took part in the latest quarterly economic survey by the Northern Ireland Chamber of Commerce and Industry.
The survey which took place before the Fresh Start agreement found more than 80 per cent of respondents thought political instability would have an adverse affect on the north's ability to attract foreign investment.
Overall however, companies were positive about the outlook for the businesses for 2016 - if not about the Northern Ireland economy.
The majority of balances in both manufacturing and services were in positive territory.
And while manufacturers in Northern Ireland were among the most confident in the UK when it came to investment plans, turnover and profitability, balances for sales and orders on both domestic and export fronts were negative.
In the services sector, the balances around employment fell during the fourth quarter with fewer taking on staff in the last three months and fewer expecting to over the next three months.
Around two-thirds of those surveyed expect their businesses to grow in 2016 with around one-in-six anticipated their firm will contract.
The chamber's policy manager Christopher Morrow said: “Competition has been constantly cited as a key issue for members alongside rising costs.
“Members from sectors such as tourism and hospitality are also concerned about the introduction of the national living wage and its proposed timetable, with the view that the policy has not been well enough thought through and potential impacts not adequately assessed.
Michael Jennings, BDO, which partners in the survey added: "Despite their optimism for business in 2016, many respondents do not expect the local economy to grow, noting concerns that instability in the Northern Ireland Executive is holding back business investment.
"Such concerns should have been alleviated by the executive’s ‘Fresh Start Agreement’ and the confirmation of corporation tax devolution in 2018, albeit that implementation could present its own difficulties."
