Business managers believe fallout from a war in Iraq will be their biggest challenge during the next six months, writes Colm Keena

A survey by Deloitte & Touche of 303 Irish business managers found that 54 per cent believe the issue is one of the top three challenges which they will be facing in the coming period. The survey was conducted in late February/ early March.

Only 9 per cent of respondents said they believed Ireland could remain immune from the fallout of a possible war in the Middle East.

Respondents were asked to select from 12 options, the three which they believed would be the biggest challenges they would encounter in the next six months.

The continued slowdown in the US economy was identified by 45 per cent of respondents as another hurdle to overcome. Pay inflation was seen by 38 per cent as being among the top three challenges.

Just over half of those surveyed, 57 per cent, said their confidence in the overall business environment had deteriorated compared with the last six months of 2002.

The survey found that 53 per cent believed that economic conditions would deteriorate over the coming six months.

Views on the second half of 2003 were more mixed with 41 per cent agreeing with the statement that Ireland's economic performance would show signs of recovery by mid-2003 and 46 per cent disagreeing.