How We Present
Irish consumer sentiment hits two-year high in July
Reuters Translate This Article
9 August 2012
DUBLIN (Reuters) - Irish consumer sentiment hit a two-year high in July on more positive economic news in Ireland and as fears of a major escalation of the euro zone debt crisis receded.
The KBC Ireland/ESRI Consumer Sentiment Index rose to 67.7 in July from 62.3 in June, the strongest reading since June 2010, building on an improving trend in recent months.
A relatively benign start to 2012 helped push the index higher in each month of the first quarter after a nosedive of 11 points in December to 49.2, the largest monthly drop in over a decade, on fears of a Europe-wide economic meltdown.
The improvement in consumer sentiment in Ireland contrasts with recent falls in UK, euro zone and U.S. consumer confidence.
That suggest domestic economic events triggered the jump in sentiment, such as the statement by European leaders that they will look at cutting the cost of Ireland's bank bailout and the government hitting its budget targets.
'The survey suggests that the all-enveloping gloom of recent years is beginning to slowly lift,' said Austin Hughes, economist at KBC Bank Ireland.
With an improvement in four of the five main components of the survey in July, and the strongest improvement in relation to the outlook for the Irish economy over the next 12 months, the data suggests domestic spending may be stabilizing, Hughes said.
Despite having the euro zone's fourth highest unemployment rate, and with domestic demand stagnant, Ireland is set to be the only country in the euro zone periphery to post growth this year and next, according to a recent survey by Morgan Stanley.
The July survey showed consumers remain cautious, however, the reading remains far short of a 17-year average of 86.8.
'Increase in the sentiment index reflects an easing in negative responses rather than a surge in positives. So fears are fading but 'feel good' is still in short supply,' said Hughes.
(Reporting by Lorraine Turner; Editing by Catherine Evans)
© Copyright 2012 Reuters
Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. 'Reuters' and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies. For additional information on other Reuters media services please visit reuters.com/newsagency.
Every day Global Good News documents the rise of a better quality of life dawning in the world from good news reported by the press; and highlights the need for introducing Natural Law based-Total Knowledge based-programmes to bring the support of Nature to every individual, raise the quality of life of every society, and create a lasting state of world peace.
Translation software is not perfect; however if you would like to try it, you can translate this page using:
Send Good News to Global Good News.