Consumer confidence improving steadily, survey finds

Irish consumer confidence continues to show steady improvement, according to the latest Deloitte Consumer Tracker.

The bi-annual survey published on Tuesday also paints a picture of an increasingly savvy consumer, who uses their smartphone to manage their finances and to research and make purchases in the run up to Christmas.

People are growing more optimistic about the level of disposable income in their household, with 27 per cent saying they feel more confident, up eight percentage points on six months previously, the survey suggests. The numbers saying they feel less confident about household income has declined from 42 per cent in March 2015 to 29 per cent.

A significant proportion of consumers also indicated they intended to spend more over the coming months.

Over the next six months, 36 per cent of respondents said they would most likely spend more on utilities and 28 per cent said health spending would be up. A further 26 per cent said they would spend more on clothing and shows. Some 24 per cent said they would be able to spend more on holidays, with the same number saying housing would cost more.

More than one in five respondents indicated they intended spending more on going out and on restaurants and hotels in the coming months.

Careers

In terms of job opportunities and career progression, 27 per cent said they were more optimistic than they were six months ago; 19 per cent said they were less optimistic.

Optimism is also more pronounced when it comes to debt levels and job security.

"It is welcome to see the general overall improvement in consumer confidence and consumer intentions to spend over Christmas and into the new year," said David Hearn, head of consumer business at Deloitte. "However, Ireland. is finding the recovery is uneven and spending will not necessarily return to the way it was before the recession.

“From a retailer’s perspective, the challenge will be to figure out which consumers have the ability to spend and understand their changing buying patterns and behaviours, and tailor their offering.”

In order to understand the changing buying patterns and behaviours, the research also examined online shopping behaviour and shows Christmas is driving further increases in online purchasing.

Mobile devices

More than four in 10 people are more likely to purchase books, DVDs and music online at Christmas compared to the rest of the year. Three in 10 are more likely to purchase clothing and footwear online at Christmas.

The survey also demonstrates the impact mobile devices are having on consumer behaviour, with 52 per cent of respondents checking their bank balance on mobile devices and 41 per cent making transfers.