In the second Economic Trends survey of 2022, Cork Chamber asked members about their experience in the most recent business quarter, Q2 2022 (April, May, June), on the business outlook for the third quarter of 2022 and on their priorities for Budget 2023. This Economic Trends Survey captures a snapshot of business experiences and of the overall operating landscape, in a period which saw the continuation of the Russian war in Ukraine and challenges with the rising cost of energy and inflation.

Budget 2023 looms large in the current volatile economic climate, and in terms of businesses’ priorities for the upcoming Budget, measures to address the cost of living were by far the most important, with nearly 70% of companies saying that it should be the government’s top priority for Budget 2023.

Housing supply was the second key budget priority for businesses, with 47% of companies identifying supply side stimulus for housing as a top issue that needs to be tackled.

Despite a fall to 58% of businesses expressing confidence in the Irish economy, it is positive to note that there is a continued high level of personal business confidence from an overall financial perspective among the Cork business community reported at 90%, the same as Q2 in 2021 and slightly up from 86% in Q1 2022.

Despite a tight labour market, there was no sign of companies looking to hold off on recruiting to drive growth. 52% of respondents reporting they expect to hire over next 12 months, and 51% reporting that they have increased employee numbers over Q2 2022.

The number of businesses with advertised vacancies rose significantly in the quarter, up to 60% at the end of Q2 2022, from 47% at the end of the last quarter Q1 2022.

1. Skills Availability
2. Cost of Energy and Raw Materials
3. Changing Consumer Spending/ Reduced Orders

Skills Availability has moved from the second threat in Q1 2022 to the number one threat to business growth in Q2. The Cost of Energy and Raw Materials has risen to second, with Competitiveness in fourth place and Availability of Housing/Rental Accommodation for Employees in fifth.