Ireland: Consumer confidence remains stable in October
November 4, 2015
In October, the KBC Bank Ireland/ESRI Consumer Sentiment Index inched up from September’s 100.6 points to 101.3 points. In the survey report, KBC pointed out that October’s improvement was too small to be statistically significant, which is why October’s consumer sentiment can be regarded as broadly stable. October’s improvement mainly reflected that consumers were more optimistic about the positive impact the 2016 Budget will have on their disposable income. Adding to this, according to the survey report, October’s slight improvement in sentiment reflects two diverging trends: continuous concerns against a backdrop of global uncertainty and growing prospects of increased income thanks to the expectations that have been generated by the 2016 Budget. Furthermore, the report went on to add that, “because the precise nature and extent of recent risks to the world economy remain unclear […] it is not entirely surprising that the Irish consumer sentiment index did not exhibit a clear trend in October”.FocusEconomics Consensus Forecast panelists expect private consumption to expand 3.2% in 2015, which is up 0.1 percentage points from last month’s forecast. For 2016, the panel sees private consumption increasing 2.9%, which is up 0.2 percentage points from last month’s forecast.