Consumer confidence rebounding, survey indicates

Shoppers’ caution about spending eased this month as Government Covid-19 restrictions eased allowing some to return to work, a survey published today shows.

Bank of Ireland’s Economic Pulse, which surveys consumers and businesses about their financial prospects, shows shoppers were far less optimistic in June than a year ago.

The report also shows that one in five businesses intend hiring workers, while 47 per cent of them expect activity to increase over the next three months.

Households remained “gloomy” about the economy, but were a little less pessimistic about prospects for the coming year, the bank’s report says.

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Money and job security fears eased in June as some people returned to work boosting buying sentiment slightly.

Around one in five people surveyed considered this a good time to make major purchases, compared with a low of 13 per cent in April, when the government shut down the Republic.

Bank of Ireland group chief economist Dr Loretta O'Sullivan argues that the survey shows a rebound in sentiment is under way, with business and consumer confidence rising.

However, confidence has yet to recover to levels seen before the Covid-19 outbreak, she notes.

“This isn’t too surprising given the unprecedented scale of the recent shock triggered by the public-health emergency,” Dr O’Sullivan says.

“But as the economy springs back to life and reboots over the coming weeks and months, with more shopfront shutters being raised and more people returning to work, sentiment should continue to strengthen.”