Irish consumer sentiment showed a marginal improvement in September, according to an index published today.
The KBC Ireland/ESRI Consumer Sentiment Index rose to 49.6 in September compared to a figure of 48.7 in August and an all-time low of 39.6 reached in July 2008.
The Consumer Sentiment Index comprises an index of consumer expectation that concentrates on how people view prospects over the next 12 months, and an index of current economic conditions, focusing on the present situation.
The Index of Consumers Expectations - based on perceptions of future financial situation, economic outlook and employment expectations - stood at 34.4 for September compared with 28.6 in August.
However, consumers’ perception of their current situation weakened in September. The value for this index was 72.3, compared with 78.6 in August. The downward trend was attributed mainly to consumers having a more negative perception of the current buying climate.
Commenting on the results David Duffy of the ESRI, said: “The results show a moderate improvement in consumer sentiment, driven by consumer expectations.
“Although consumers were more optimistic about the outlook for the economy and the labour market in September, nearly 7 out of 10 remain concerned about how their household finances have developed over the past 12 months.”
He said the fall in the index of current economic conditions to 72.3 in September reflects a change in consumer’s perceptions of the current buying climate, "possibly, in part, due to the ending of the summer sales”.
Austin Hughes of KBC Ireland said the slight rise in sentiment in September was encouraging. "The combination of layoff announcements, controversy about Nama and the Commission on Taxation Report might have been expected to weigh on confidence. So, it is slightly surprising that the Sentiment Index didn’t weaken last month," he said.
"This suggests Irish consumers are able to detect slightly more positive signs amid the prevailing gloom.”
He added that a sense "that the Apocalypse has been averted" meant consumer confidence measures rose in most countries last month, and it could be argued that consumers "are glad to see policy action, even if this action is less than perfect".