A GROUP REPRESENTING Irish businesses has said there are clear signs that the economy has picked up in recent months.

IBEC said it was “cautiously optimistic” that economic indicators will continue to get better in the second half of the year and off-set the bad figures from the start of 2013. The group said that trading has improved in recent months and said the good weather which saw heatwaves across large parts of the country in recent weeks should help.

Figures from the Central Statistics Office show Ireland officially re-entered recession at the end of June as the economy shrank for the third quarter in a row.

“It was a difficult start to the year, but there are signs of renewed economic momentum in the economy,” said IBEC’s chief economist Fergal O’Brien. However he warned that consumers remain cautious about spending money.

IBEC has called on the Government to drop plans for €500 million in tax increases to be included in Budget 2014 in a bid to increase consumer confidence and help business.

“The tough austerity programme of recent years means we now have choices that we previously didn’t,” said O’Brien. “Irish taxpayers deserve a break.”

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