Ireland: Consumer confidence surges to the highest point in seven-and-a-half years in July
August 13, 2014
The KBC Bank Ireland/ESRI Consumer Sentiment Index surged 8.3 points over the previous month to reach 89.4 points in July, which marked the highest level since January 2007. According to the survey report, “the sharp rise in sentiment continues the notably more volatile pattern seen of late as consumers struggle to make sense of strongly conflicting signals on the health of the recovery and what that might mean for their personal finances.”
The positive result was driven by both improving perceptions of the current economic environment and expectations for the future. The current economic conditions index reached the highest level since 2006, with consumers expressing more optimism regarding their current financial situation and their ability to purchase durable goods. The consumer expectations index also registered a significant improvement, with households expressing more optimism about the labor market as well as their financial situation over the next 12 months. However, some respondents are still concerned about their personal financial prospects, and feel there is a disconnect between the economic recovery at a national level and the conditions they are facing firsthand.
Author: Carl Kelly, Economist