Consumer sentiment steady in March

Irish consumer sentiment held steady in March as a more positive outlook on the economic environment was balanced by concern about the impact of new taxes and pay cuts on household finances.

The KBC Bank Ireland/ESRI Consumer Sentiment Index climbed to 60.0 in March from 59.4 in February. The index has fluctuated sharply in recent months, hitting a 12-month low of 49.8 in December before bouncing back to 64.2 in January.

There were signs of increased confidence about the Irish economy following a deal struck by the government to reschedule the payment of around €30 billion of promissory notes, the survey's authors said.

But there were signs this was being balanced by concerns about a new property tax due to be introduced in July and a fresh round of public sector pay cuts which are currently being negotiated.

"Consumers were a little more optimistic about the prospects for the Irish economy and the outlook for jobs. However, they were more nervous about a looming deterioration in household finances," said Austin Hughes, economist at KBC Bank Ireland.

"While Irish consumers think the economy may be on the mend, they don't see that translating into improved living standards in the year ahead," Mr Hughes said.

The survey's index of consumer expectations based on consumers' perceptions of their future financial situation slipped to 49.5 in March from 50.0 in February

The index of current economic conditions rose to 75.5 in March, from 73.2 in February.