But the NI Chamber and BDO NI quarterly economic survey for April to June said business needs clarity on new trading arrangements with the US, and more action on red tape between Great Britain and Northern Ireland.
One in five of those surveyed said it was too soon to say what impact the EU-UK reset would have – but 41% said they believed it will have a positive impact on the NI economy.
The deal agreed in May has enhanced co-operation on trade, food standards, energy, and youth mobility.
But views on its impact were mixed, with just 24% believing it will impact positively on their individual businesses, while 36% were neutral.
And 21% said US tariff measures would have a negative impact on their business – while for businesses with US trade links, 34% anticipated negative effects.
However, 79% of businesses reported healthy trading conditions, trading either well (35%) or reasonably (44%) during April to June.
But around one in five were experiencing challenges, with 15% just covering costs and 6% struggling or on the verge of closure.
Manufacturers (48%) are slightly more confident around turnover growth for the next 12 months than services companies (42%).
But confidence in profitability had dipped for both sectors in Q2 25, particularly for services, after a positive start to the year.
Just over half (52%) of businesses reported seeing a slowdown in demand in the second quarter, up from 46% in the first quarter.
According to the NI Chamber, “overall, the findings suggest more businesses are noticing some softening in demand conditions”
Suzanne Wylie, chief executive of NI Chamber, welcomed the findings. “Once again, our research highlights the tenacity and resilience of Northern Ireland businesses, with 79% continuing to trade well or reasonably despite numerous challenges, including absorbing the cost of the Autumn budget and dealing with protracted uncertainty in international markets.
“However, the mixed responses to recent changes in trading arrangements highlight the need for greater clarity and support.
“While 41% of respondents believe the EU-UK reset will positively impact the NI economy, concerns persist around ongoing GB-NI trade frictions.
“Separately, businesses are also uncertain about the implications of proposed US tariff measures, with views on their impact divided and many yet to form a clear assessment.
“Taking all this together with a new trade strategy, a new industrial strategy, and a new trade deal with India, it is imperative that the government provides Northern Ireland’s businesses with clear timelines, detailed information, and robust support to navigate these changes and seize new opportunities.”
Brian Murphy, managing partner at BDO NI, added: “No matter what challenges and uncertainties NI businesses have to face, it’s heartening to see that 79% are still trading well and are just getting on with it.
“This is similar to where we have been in recent years and shows that regardless of the wider economic picture, and no matter what the commentators say, our local firms persevere and succeed.”
And he said it was “reassuring” that recruitment activity remained high, with the survey reporting that 81% of manufacturers and 69% of services firms are either currently taking on new staff or planning to.
He added: “Given the positive economic momentum that recent quarters’ results have shown us, it’s clear to me that the all too common spectre of ‘uncertainty’ no longer has the same hold over NI businesses that it used to, and long may this continue.
“Looking to the future, this momentum can be enhanced even further through collaboration with our elected representatives and other stakeholders. This presents NI plc with a very unique opportunity, an opportunity that we cannot afford to waste.”
