Consumer sentiment index rose in March

CONSUMER CONFIDENCE rose last month as worries about job losses and personal finances eased.

The KBC Ireland/Economic and Social Research Institute (ESRI) consumer sentiment index rose to 61.9 in March compared to a February reading of 59.4, as consumers began to show a little less pessimism about their personal financial situation despite general apprehension about the economic outlook remaining.

While concerns about the euro zone and the effect of Greece’s debt situation may have had an impact on the survey, domestic concerns about work stoppages in the public sector and the likely cost of stabilising the banking sector was also likely to have contributed to some of the pessimism.

The consumer sentiment index includes a measure of consumer expectation that tracks how consumers view prospects over the next 12 months, along with an index of current economic conditions.

The index of consumer expectations was 44.5 in March compared with 46.3 in February as consumers continued to have concerns about the overall economic outlook. However, the value of the index measuring the current economic situation rose to 87.6 in March, up from 78.8 in February.

“The results for consumer sentiment indicate some improvement in March as consumers perception of the current environment improved,” said the ESRI’s David Duffy. “This is primarily due to a more positive perception of the buying environment for major household durables.”

In January, the index climbed as high as 64.6. The monthly index hit a low of 39.6 in July 2008.