Ireland: Consumer confidence hits ten-year high in December
January 15, 2016
In December, the KBC Bank Ireland/ESRI Consumer Sentiment Index inched up from November’s 103.1 points to 103.9 points. In the survey report, KBC pointed out that December’s result was driven by improvements in four of the five components of the index and that the result tallied in December was the highest since January 2006. December’s result also marked the third consecutive monthly increase, which suggests that a generalized sense of optimism has taken hold among Irish consumers. The report went on to add that Irish consumers expect a stronger economy and improved personal finances in 2016.
KBC also stated that, “Irish consumer sentiment has been set on a path of steady if modest improvement in recent months. The details of the December reading show modest gains in four of the five components of the sentiment index and a marginal decline in the other. So, there is little suggestion of any sea-change in the thinking of Irish consumers of late. In an extremely uncertain world, they expect positive influences to dominate negatives in the coming year both in relation to the Irish economy and their household finances but not to a degree that would that would transform either […] Irish consumers were slightly more positive in relation to their earning and spending prospects in December. The assessment of how their household finances developed in the past year improved fractionally while their views on the year ahead backtracked slightly from the fourteen year high seen in November, roughly twice as many Irish consumers expect their spending power to improve in 2016 as envisage a deterioration.”