Latest Consumer Sentiment Index

The overall KBC Ireland/ESRI Consumer Sentiment Index weakened in July to 66.2. This compares to a figure of 67.9 in June.

 

Commenting on the results David Duffy, ESRI, said

·          “Consumer sentiment weakened slightly in July. However, the index remains well above the value in July last year of 49.5 and its all time low in July 2008 of 39.6.

·           “The decline mainly reflects consumers becoming more concerned about their current household finances, with the Index of Current Conditions slipping to 85.7 compared with 88.4 in June.

·          “Consumers also have some concerns about the outlook. The Expectations index weakened to 53.1 from 54.1 in June, on the back of a more negative view of the outlook by consumers for the economy and labour market over the next 12 months.”

 

 In addition, Austin Hughes, KBC Ireland, noted:

·          “After the stronger trend of recent months, the correction in Irish consumer sentiment seen in July isn’t entirely surprising. The reality is that for most people conditions remain difficult and the future still looks uncertain. While the Irish economy may not be as weak as during 2009, there is little to spark a clear ‘feelgood factor’. So, at best sentiment and household spending seems likely to move in a pattern of two steps forward and one step back.”

·          “The July results suggest Irish consumer sentiment is still fragile but it doesn’t seem to be sending the same signals as in the US, where tumbling confidence data is warning of a faltering recovery. For the moment at least, the Irish sentiment survey suggest fears about jobs and incomes are still fading even if the improvement is fairly limited.”