Ireland: Consumer confidence falls in November
December 3, 2013
The KBC Bank Ireland/ESRI Consumer Sentiment index fell 5.2 points over the previous month to 71.0 points in November, which was below the six and a half year high recorded in October. According to the survey report, "the Irish economic recovery now emerging is still tentative and many consumers are severely cash constrained. While they sense the broader economy is improving, that isn't translating into any immediate easing in the pressures they face."
The strong decrease in November's current economic conditions index reflected that consumers have become more pessimistic regarding their financial situations at present and about their ability to purchase durable goods. Meanwhile, the consumer expectations index remained unchanged over the previous month; consumers expect some improvement in unemployment, but they feel less optimistic about the general economy in the coming 12 months.
FocusEconomics Consensus Forecast panelists expect private consumption to contract 0.9% in 2013, which is up 0.2 percentage points from last month's forecast. For 2014, the panel sees private consumption increasing 0.7%, which is up 0.1 percentage points from last month's projection.
Author: Carl Kelly, Economist