Ireland: Consumer confidence plummets to 56-month low in July
August 13, 2019
The KBC Bank Ireland/ESRI consumer sentiment index tumbled in July, dropping to 85.5 points from June’s 90.9 points—the worst reading since November 2014.
Increased risk of a no-deal Brexit with Boris Johnson now at the helm in the UK, warnings of dimmer prospects domestically, and challenging external conditions weighed on households’ outlook on the general economic situation, personal finances in the year ahead, and employment prospects, which all sank deeper into pessimistic territory. Households also expressed less willingness to purchase big-ticket items, although remained optimistic on this front. On the upside, respondents were more upbeat about their personal financial situation in the past 12 months, which suggests sentiment is being curbed by the risks of a Brexit-induced downturn than weak income growth at present.
Author: Nihad Ahmed, Economist