IRISH BUSINESS people’s confidence in the future has collapsed, along with the economy and asset values, a new survey shows. Ireland is now one of the most pessimistic countries in the world when it comes to the outlook for business, a global study by corporate advisor firm, Grant Thornton shows.

The survey of 7,000 executives in businesses in 36 countries shows that Irish managers’ views of the future have been radically transformed over the last year.

Irish business people have gone from having “optimism” ratings of 84 per cent in 2006 and 82 per cent in 2007 to minus 50 per cent this year. They now rank 30th out of 36, compared to two years ago, when they were amongst the most optimistic surveyed.

A key issue for executives in all countries surveyed was the fall in consumer spending. Irish business people shared this worry, with one in three saying they were most concerned about this aspect of the recession.

One in four say they are most worried about the lack of credit for businesses, while 14 per cent say their chief concern is falling consumer credit.

Commenting on the findings, Pat Burke, head of Grant Thornton’s private business division in Ireland, said yesterday that the survey demonstrated the need for the Government to kick-start the economy and stimulate consumer spending.

“There is no doubt that the concerns expressed by privately-held businesses about the collapse in business and consumer credit is directly linked to the slump in consumer demand,” he said.

“The lending freeze in the banking sector exacerbated already depressed sentiment on foot of the housing crash and rising jobless figures.”