InterTradeIreland’s latest All-island Business Monitor shows that business sentiment across the island remains resilient in 2025, with most firms holding steady and staying profitable. Yet, beneath this stability, new data uncovers a rising tide of uncertainty, as geopolitical tensions begin to erode business confidence.
The survey, which is the biggest of its type across the island, collects the views of 750 business owners and managers. It was conducted between 7th April and 9th of May, immediately after the announcement of new US trade tariffs.
The survey results reveal a clear sense of unease, with global political and trade uncertainties ranking among the top three concerns for businesses – three in ten (32%) SMEs identified it as a key issue. This growing anxiety appears to be directly impacting sentiment, as both business and consumer confidence are cooling – the number of businesses citing this as a concern has risen to 21% which is an increase of 16 percentage points compared to this time last year.
The number one concern remains rising costs of other overheads (56%), which includes staffing costs and insurance while energy bills remain a concern for half (51%) of businesses. Skills shortages remain persistent and competitive pressures are also rising with more firms flagging issues such as weakening demand and late payments.
According to the All-island Business Monitor, 14% of businesses surveyed are directly exposed to the impacts of US trade tariffs and potential retaliatory measures. Half of those affected have close trading connections with the US. Those who reported they were most concerned about the impact of tariffs were in the manufacturing sector, with worries about increased raw material costs and supply chain disruption.
The latest All-island Business Monitor survey also asked SMEs about their approach to sustainability and achieving net zero. While over half (55%) of respondents recognised its importance to their business, only 17% currently have a plan in place, with a further 12% developing one.
Among those without a net-zero strategy, eight in ten (86%) do not expect to have one within the next three years. When asked about the main barriers, four in ten (41%) cited the demands of daily operations as taking precedence over sustainability planning.