Irish consumer and business sentiment picks up in December

Irish consumer and business sentiment improved in December as the State exited Level 5 Covid-19 restrictions and positive vaccine news lifted the spirts of households and firms, according to Bank of Ireland.

The Bank of Ireland Economic Pulse came in at 70.2 in December 2020. The index, which combines the results of the consumer and business pulses, was up 3.2 on last month but down 12.8 on a year ago.

“The December Economic Pulse benefitted from the reopening of the economy at the start of the month. Consumer and business sentiment both tracked higher as households and firms geared up for the festive season and took comfort from developments on the Covid vaccine front,” said Loretta O’Sullivan, Bank of Ireland’s chief economist.

“But with virus cases on the rise again and the Government announcing another round of restrictions in recent days, the mood heading into the new year will likely sour. In contrast, the clinching of a Brexit trade deal on Christmas Eve is expected to be met with a sense of relief, bittersweet though it may be.”

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The consumer pulse rose 5.9 points on the month to 66.2, but was down 10.2 on a year earlier. The business reading stood at 71.2 in December 2020, up 2.5 on last month but down 13.4 on the year.

The Economic Pulse surveys are conducted by Ipsos MRBI on behalf of Bank of Ireland with 1,000 households and approximately 2,000 businesses on a range of topics including the economy, their financial situation, spending plans, house price expectations and business activity.