DUBLIN (Reuters) - Irish consumer sentiment rose marginally in August towards the nine-year high posted two months previously, a survey showed on Wednesday, and its compilers said that booming economic growth suggested that levels of confidence should be even higher.
After growing by more than 5 percent in 2014, Ireland's economy is set to be the best performing in Europe again this year and data last week showed retail sales sales volumes rose by almost 10 percent year-on-year in July.
The KBC Bank Ireland/ESRI Consumer Sentiment Index increased to 101.1 in August from 99.7 in July, only the third time in ten years that the monthly sentiment reading exceeded the 100 mark.
But while KBC chief economist Austin Hughes said it was clear the "feel-bad" factor of Ireland's debt crisis had faded, the mixed results also suggested that consumers remain relatively cautious in relation to their household finances.
Consumer sentiment has hovered around the same level all year which could reflect fairly modest income growth being offset by substantial increases in living costs in insurance, education and accommodation in particular, he said.
"In view of very strong GDP data and buoyant exchequer returns released through the survey period, this might be regarded as a slightly disappointing outcome," Hughes said.
"We still remain some distance from a sentiment reading that might be interpreted as suggesting that a broadly based ‘feel-good' factor has taken hold."