Irish consumer sentiment increased in November, with consumers appearing to be less fearful about what Budget 2013 may hold.
According to the KBC Ireland/ESRI Consumer Sentiment Index, consumer confidence rose to 63.8 from 60.9 in October.
This represents a second successive monthly gain following the sharp decline seen in sentiment in September. The 50 mark separates growth from contraction.
The small improvement in sentiment last month suggests consumers still cling to a view that a gradual improvement in Irish economic conditions is progressing, according to KBC Bank.
The better sentiment in Ireland mirrors that in the US and Britain, but is at odds with a gloomier euro zone.
“If consumers wake up on Thursday morning feeling that Budget 2013 has made them much poorer than they expected there is some risk that sentiment and spending could be on a weaker than expected trajectory in 2013,” said KBC economist Austin Hughes.
However, he said if the budget package can be presented in a manner that suggests the coming year will be difficult but bearable and also encourages the view that the Irish economy and household finances are slowly moving closer to a return to sustainable growth, the near-term outlook may be better than envisaged.
