Ireland: Consumer confidence hits ten-year-high in November
December 8, 2015
In November, the KBC Bank Ireland/ESRI Consumer Sentiment Index inched up from October’s 101.3 points to 103.1 points. In the survey report, KBC pointed out that November’s result was driven by improvements in four of the five components of the index and that the result tallied in November was the highest since January 2006. The jobs market was the component of the survey that reported the strongest gain in November as improved domestic conditions are becoming more established throughout the country. The 2016 Budget and its tax cuts are in part responsible for boosting consumer sentiment as the components of the survey related to household finances showed a clear improvement. The buying climate, on the other hand, was the only component that weakened in November.
KBC went on to add that, “the November sentiment survey makes for encouraging reading in that it hints at a further broadening of the Irish economic recovery. The fact that consumer confidence is now at a ten year high has to be seen in the context of both the strength of the current upswing and the intensity of the downturn that preceded it. The modest monthly change in November and the related weakening in the buying climate emphasizes that the recovery in the fortunes of Irish consumers is still fairly restrained. So, the sentiment survey signals the reality that for most consumer’s things are now getting better and this is likely to prompt a clear improvement in spending from the depressed level of recent years but the survey is equally emphatic in signaling that we are not seeing a consumer boom.”