Ireland: Consumer confidence climbs to highest point in over seven years in April
May 13, 2014
The KBC Bank Ireland/ESRI Consumer Sentiment Index climbed 4.1 points over the previous month to reach 87.2 points in April. The index is now at the highest point since January 2007. According to the survey report, the rise in sentiment reflects the, “rising trend that has been in place for the past year or so. This owes much to a growing sense that the outlook for the Irish economy is improving. Last month's survey also suggests many households remain under financial pressure. So, while the survey may hint at some pick-up in consumer spending, there is little to suggest a dramatic increase is in prospect.”
The current economic conditions index increased notably in April, with consumers expressing more optimism regarding their current financial situations and their ability to purchase durable goods. Meanwhile, the consumer expectations index also increased over the previous month. Consumers were more optimistic about improvements in the labor market and the state of the general economy over the next 12 months.
FocusEconomics Consensus Forecast panelists expect private consumption to expand 1.2% in 2014, which is up 0.3 percentage points from last month's forecast. For 2015, the panel sees private consumption increasing 1.1%.
Author: Carl Kelly, Economist