Growth momentum slows, while exporting and cross-border businesses provide a bright spot, underpinning resilience
The latest quarterly business survey from InterTradeIreland points to more subdued economic sentiment in Q3 2025. The survey, which is the biggest across the island reveals that the proportion of firms reporting growth is 28 per cent, the lowest level since 2018 while the number describing their position as stable has climbed to 64 per cent.
This rise in stability signals a change in tone; momentum has slackened, and companies appear to be prioritising resilience and operational certainty over rapid growth. This reflects some of the financial pressures in Q3 as business profitability has edged lower.
InterTradeIreland’s Director of Strategy, Martin Robinson says:
It’s important to note this reflects a lack of pace, not a downturn in activity. It points to a cautious business environment. We know that SMEs have had to navigate persistent cost challenges against the backdrop of a globally uncertain trading environment. InterTradeIreland’s Trade Hub and innovation supports are designed to help SMEs address these concerns.
Martin Robinson, InterTradeIreland’s Director of Strategy
The survey’s broader data shows that, while sentiment has softened across the board, the impact is uneven. Larger firms and those active in export and cross-border trade outperform their peers on all the key measures including growth, profitability, and sales.
Enterprise Minister Peter Burke TD comments:
The data shows exporting is vital for SMEs, and cross-border trade is an easy first step. My Department’s recent Market Diversification Action Plan and the Get Exporting Programme supports SMEs to scale and become more competitive internationally to secure long-term economic prosperity.
Peter Burke TD, Enterprise Minister
Energy costs, rising overheads, recruitment challenges, global trade uncertainties, and increased concern about weakening demand are the top issues for businesses. Yet, when it comes to cutting costs, most SMEs are standing still with the survey indicating that 70 per cent are taking no action. Just 13 per cent have introduced energy or sustainability measures, and a mere 4 per cent have explored technology or automation in the past six months.
Economy Minister Dr Caoimhe Archibald says:
As the backbone of our economy, I am determined to ensure that our SMEs have the help available to succeed. There are a number of supports available both through Invest Northern Ireland and InterTradeIreland to help businesses optimise their operations.
In addition, with the benefit of dual market access and the cross-border market, I would encourage SMEs to avail of those opportunities as routes to new customers and new growth.
Dr Caoimhe Archibald, Economy Minister
Long Meadow Cider in Co Armagh is one business that is doing just that. The family run SME has been in operation for 60 years. Alana McKeever says the cross-border market has been a vital route to faster growth and enabled the business to proactively plan for the future.
Working with InterTradeIeland has helped us to break into the Republic of Ireland. We participated in a trade mission and as a result started working with a large retailer in Ireland and developed a new distribution channel. It was intense and very welcome.
Alana McKeever, Long Meadow Cider
Long Meadow’s journey in the cross-border market also reflects the results of the Business Monitor survey which explored the experience of businesses currently engaged in export and cross-border trade.
Of the SMEs that trade cross-border and export, 59 per cent reported that their confidence, negotiation skills, problem solving and resilience had improved directly as a result of their cross-border experience. The cross-border market also had positive impacts on building expertise in managing logistics and compliance paperwork which created further capability and resilience in the business.
Martin Robinson concludes:
The cross-border market is a great proving ground. Firms with scale, export capacity and all-island reach continue to show relative strength and more confidence while domestically focused firms remain more cautious and margin constrained heading into 2026. In fact, seven out of 10 of those who trade cross-border and export would recommend the cross-border market as a stepping stone to export trade further afield. If you would like help to begin your cross-border export journey, contact InterTradeIreland.
Martin Robinson, InterTradeIreland’s Director of Strategy
