Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Irish consumer sentiment budges only slightly from 20-month low

Published 01/12/2016, 12:05
Updated 01/12/2016, 12:10
© Reuters.  Irish consumer sentiment budges only slightly from 20-month low

DUBLIN (Reuters) - Irish consumer sentiment rose a touch in November, a survey showed on Thursday, but its authors said it was not enough to be considered statistically significant as morale remained close to 20-month lows.

Irish economic growth is forecast to be the highest in the European Union for a third successive year in 2016 but recent data has been mixed against the backdrop of Britain's decision to leave the EU, a major risk to neighbouring Ireland's economy.

The KBC Bank Ireland/ESRI Consumer Sentiment Index rose to of 97.8 from 97.3 in October, remaining well below the 15-year high of 108.6 hit at the start of the year when Irish economic indicators were overwhelmingly positive.

"A monthly change of 0.5 percentage points can't be regarded as statistically significant and suggests consumers remain cautious in relation to the general economic outlook and their own personal finances," KBC chief economist Austin Hughes said.

"The broader message is that Irish consumers are having considerable difficulty in assessing the extent to which their circumstances might improve or worsen in the coming year."

There were declines in three of the five elements of the survey and improvements in the other two, adding to the mixed economic picture, and Hughes said it was particularly surprising that the jobs outlook dropped to a to 28-month low.

Employment has consistently grown throughout the economic recovery and Ireland's unemployment rate fell further this week to 7.3 percent, less than half the peak of 15 percent hit in 2012 when the country was under an international bailout.

Hughes said the uncertainty over the jobs climate could be due to Brexit, the challenge a possible cut in U.S. corporate tax rate may pose to foreign direct investment in Ireland or deteriorating industrial relations.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.