ALMOST half of Northern Ireland businesses have postponed or cancelled investment plans due to Brexit, according to a new survey.
The latest Brexit Sentiment Index, which covers the period from April through to June, shows that negativity persists amongst businesses on both sides the border in relation to the UK' s exit from the European Union next year.
The findings show that sentiment among respondents in Northern Ireland has dropped for the the first time after incremental increases over the last year, remaining firmly in negative territory. Almost three quarters of those surveyed in the north cite a 'very limited' level of visibility as the main drag on sentiment, while almost half (49 per cent) of businesses said they have postponed or cancelled investment plans as a result of the landmark Brexit vote in comparison o just 22 per cent in the Republic.
Looking ahead and the outlook is no brighter with 61 per cent of SMEs in the north holding the belief that Brexit will have a negative impact on future business. This is in comparison to 50 per cent when the Index was first launched a year ago.
In relation to the border, the majority of businesses both in the north (85 per cent) and the Republic (68 per cent) do not foresee a hard border and instead envisage something close to the existing set-up.
Brian Gillan, head of business and corporate banking at First Trust Bank, which forms part of the AIB Group said the latest figures show the business view has not changed in relation to Brexit.
“While we have seen incremental increases, the passage of time since we undertook the first wave of the AIB Brexit Sentiment Index has done little to change the views of Northern Ireland businesses."
"There is little doubt that the lack of certainty as to what is going to happen down the line, good or bad, is impacting decisions here – with now one in two investment or expansion plans being postponed or cancelled as a direct result of Brexit.”
While the number of firms with a Brexit plan in place has risen slightly, the percentages are still in single figures with the Index reporting that five percent
of Northern Ireland businesses have a formal plan in place, compared to six percent in the Republic.
"We would strongly urge companies of all sizes to start the process of understanding the potential implications of Brexit for them – and seek help wherever it’s available – whether through local advisers or through various Brexit preparation programmes delivered by the likes of InterTradeIreland to create a plan," Mr Gillan added.
