Consumer sentiment up

CONSUMER SENTIMENT rose in April as consumers become more upbeat about the prospects for the labour market and future household finances.

The combined KBC Ireland/ ESRI Consumer Sentiment index rose to 65.6 last month, compared to 61.9 in March and an all-time low of 39.6 in July 2008. The expectations sub-index rose from 44.5 in March to 53.7 in April.

However, there was a decline in the index of economic conditions, which weakened to 83.4 from 87.6 in March as concerns about finances weighed on consumers.

KBC Bank’s Austin Hughes said: “If fears continue to fade, we should see a slightly healthier trend in household spending as the year progresses.”

Conditions would likely remain tough for many people for a considerable time, but there was a sense that the worst was over, with some people already experiencing an improvement in circumstances.