Irish consumer sentiment holds steady in November

PAMELA NEWENHAM

Irish consumer sentiment held broadly steady in November, according to a survey by KBC Bank Ireland and the ESRI, as consumers struggled to reconcile progress in Irish economy with pressure on household finances.

The KBC Bank Ireland/ESRI Consumer Sentiment Index stood at 85.3 in November, largely unchanged from the October reading of 85.5.

KBC Bank’s chief economist Austin Hughes said the pull-back in Irish consumer sentiment largely reflects domestic factors.

He said Budget 2015 was intended to signal the end to austerity, but that the recent controversy over water charges has acted as a touchstone for widespread concerns that the upturn is not delivering an expected improvement in living standards.

“Many consumers continue to expect that their circumstances will deteriorate further in the coming year,” he added.

However, he said there is some positive momentum in Christmas spending, with 29 per cent of consumers indicating now was a good time to buy major items, compared to 17 per cent who thought it was a bad time to buy.