DUBLIN (Reuters) - Irish consumer sentiment rose strongly for the second month in a row to its highest level since the COVID-19 pandemic took hold following the reopening of large parts of the economy at the start of December, a survey found on Wednesday.
Ireland has the lowest incidence of the coronavirus in the European Union after it acted swiftly to temporarily shut shops, bars and restaurants that are set to largely remain open for the rest of the month, while much of Europe has had to resort to a new set of restrictions.
The KBC Bank consumer sentiment index rose to 74.6 from 65.5 in November. That compares with a pandemic low of 42.6 in April during a complete lockdown of the economy and was not far off a mark of 81.4 a year ago before the COVID-19 crisis.
Data has shown that much less damage was done to the economy during the six weeks of restrictions to the end of November compared with an initial lockdown. Credit and debit card spending has risen sharply since the reopening.
The survey's authors said the results may suggest consumers believe the worst of the pandemic is behind them, but that they are still overwhelmingly cautious about the outlook for their household finances in the year ahead.
They added that 41% of respondents said they had less money for Christmas spending than last year and roughly the same replied that their situation was unchanged.
"Our sense is that these numbers will translate to a solid if unspectacular Christmas period in terms of consumer spending," said KBC Ireland chief economist Austin Hughes.