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It finds that while sentiment remains cautiously positive, confidence has moderated since early 2025. The report said business conditions in the region "weakened somewhat" in quarter three of 2025, with more firms reporting increasing strain. Just over half (52%) of businesses said activity or demand has weakened compared with three months ago, while nearly a quarter (24%) are now under clear financial pressure, the highest proportion since early 2023. Although the share of firms trading well has edged up to 37%, more are now just covering costs or struggling to break even (24%), suggesting that while overall trading levels remain steady, the underlying financial resilience of some businesses is deteriorating. Rising wages, tax, and input costs continue to squeeze margins, leaving limited capacity to absorb further increases or invest for growth. After signs of easing earlier in the year, the number of firms reporting weaker demand and tighter finances has ticked upward again, signalling a more cautious mood. Suzanne Wylie , chief executive at NI Chamber, said her members are eager to see the Government follow through on commitments to boost growth. "Ahead of the autumn Budget, the high cost of doing business continues to create a cautious yet resilient business environment, and whilst in relative terms, it is encouraging to report that Northern Ireland has recently been outperforming the UK average across many indicators, business conditions have weakened somewhat this quarter, with ongoing pressure on operating margins and limited financial headroom available to many firms," she said. "Members are eager to see Government follow through on commitments which will help boost growth and Northern Ireland's competitive proposition. "This is evidenced by the overwhelming majority who support the restarting of the conversation on corporation tax between the Executive and UK Government. "There is a clear desire to reduce costs, and create a new growth story underpinned by an ambitious long-term economic strategy." Professor Sir Ian Greer , president and vice-chancellor at Queen's University Belfast, said strategic investment in higher education is fundamental to economic recovery. "With businesses showing resilience, manufacturers expecting strong growth and our region outperforming on exports, there's clear demand for the skilled graduates we produce," he said. "A triple helix approach based on partnership between Government, industries and further and higher education providers, which prioritises skills, R&D, and infrastructure investment, is the key starting point for sustained and sustainable inclusive economic growth in Northern Ireland . "We need Government, industry, and universities working together, aligning policy frameworks like the MaSN cap with economic need, deepening industry academic collaboration, and ensuring our talent pipeline matches the ambitions of businesses that are investing in training despite tight margins. "This is our opportunity to demonstrate that strategic investment in higher education isn't separate from economic recovery, it's fundamental to it."
