ESRI cuts growth forecast, AIB warns optimism falling

The ESRI said this was due to the impact of the international and European slowdowns seen since the end of last year.With signs that firms are investing less, and consumers becoming increasingly wary of spending, the ESRI has marked down its growth forecast from 4.2% to 3.8%.

But the forecasts are based on a deal between Britain and the EU that effectively means no change to current trade arrangements for almost two years.Using ECB data, the ESRI also sees signs that the banks are tightening lending conditions for small and medium sized firms, with the rate of credit refusals here running at twice the euro area average.Meanwhile, optimism among Irish companies has fallen to its weakest point in eight years, according to a new AIB report.

The report said hiring expectations are at their lowest since June 2012 across the manufacturing and services sectors.Speaking about the results of the survey, Head of Business Banking at AIB Catherine Moroney said: "The business activity survey was conducted during a period of intensified uncertainty due to Brexit, and although sentiment overall is lower than October 2018, it is still in positive territory.

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