Financial confidence rising - survey

Financial confidence is on the rise, a new survey said today, indicating that Irish adults could be coming to believe the worst of the economic crisis is over.

The Standard Life Financial Confidence Index has shown an increase for the first time in 21 months, rising to 2 per cent 54.6 per cent in the quarter to December last year.

The quarterly index, which hit a record of 66.7 in March 2008, has since fallen for a year and a half. Its lowest point was recorded in September 2009, when it reached 52.6.

"This is the first increase in nearly 2 years and hopefully increased confidence signals a positive impact for the real economy," said Brendan Barr, head of marketing at Standard Life.

"Our latest survey was taken during the second half of December, after one of the toughest budgets in years, so this is even more encouraging news."

The survey showed men were more confident than women, and younger adults aged 25-34 experiencing the largest increase in financial confidence during the last quarter of 2009, rising 5.8 per cent to 54.2 per cent.

The survey showed that adults aged over 65 were experiencing a fall in confidence, slipping to 63.6 per cent from 64.9 per cent in September, but the age group remains the most financially secure demographic group.

Confidence also varied according to region, with those living in the capital the most financially secure at 58.4 per cent, and adults living in Munster, the least financially secure with a score of 52.5 per cent.

The Standard Life Financial Confidence Index is a measure of how financially secure people feel on a scale of 1 to 10. More than 1,000 adults were surveyed between December 18-30th 2009.