Dubs lead the way in feeling upbeat about the future

Consumer sentiment is at its strongest level since 2003, according to a new survey which shows Dublin leading the way in terms of optimism.

The latest KBC Bank Ireland/ESRI Consumer Index shows sentiment rose solidly in the capital during the second quarter, rising from 148.9 in the first three months of the year to 155.6. For the same quarter a year earlier, sentiment in Dublin was at 131.

The rise in sentiment was less marked outside of the capital, increasing from 152.4 for the period January to March to 153.9 in the second quarter. For the same three-month period a year earlier, sentiment was at 127.3.

According to the survey, consumers in Dublin were found to be more upbeat about the economy and employment compared to the rest of the country. Some 69 per cent of Dubs said they expected the Irish economy to improve in the next twelve months compared to 57 per cent of consumers outside the capital.

Through the first half of 2015, consumer sentiment has risen both in Dublin and across the rest of Ireland but the improvement in the capital has been somewhat stronger, particularly in the past three months.

The report reveals that Dublin consumers have been notably more upbeat about the general economic outlook than their counterparts in the rest of Ireland for the past four years. During the boom period, sentiment increased somewhat more outside the capital despite falling more sharply in the immediate aftermath of the downturn.

The index forms part of the Dublin Economic Monitor, which looks at how the region is performing across 15 key economic indicators.

The monitor, which is a joint initiative of the four Dublin local authorities, shows that the capital is playing a pivotal role in driving the national economic recovery.

It reveals that unemployment rate in the capital continue to fall year-on-year and is now at a six-year low. The unemployment rate, which is currently at 8.9 per cent, a full percentage point lower than for the country as a whole.

The proportion of Dublin residents employed in the private services sector meanwhile rose to in excess of 360,000 in the first quarter, while employment in the public sector remained relatively stable at almost 150,000.