Operating profits rose at almost half of all Irish businesses during the first three months of the year, according to a new study published today.

The inaugural BDO Optimism index shows that 45 per cent of companies recorded higher levels of business performance during the first quarter compared to the same period a year earlier.

The survey also indicates that businesses outside the capital are rapidly closing the gap on their Dublin-based peers in terms of profitability, pricing levels and optimism.

Overall, one in five businesses (20 per cent) in Ireland, rising to one in four in Dublin, said they charged higher prices for their products or services than last year. Another 65 per cent across the country said they maintained prices at the same level, while 11 per cent cut prices.

Price increases

Forecasts based on the data suggest price increases will continue next year with one in four businesses expecting to increase prices again next year.

The BDO Optimism Index is compiled by Behaviour and Attitudes using five years of available data, including recent business results, projected employment levels, profit margins, and expectations for the forthcoming year of 350 business owners and managers. The index gives an overall optimism score of 63.4. Export-focused companies were the most optimistic with 54 per cent expecting higher levels of activity.