The potential effects of Brexit and other political instability is weighing on business sentiment, but consumers are becoming more confident about their finances, according to June's Economic Pulse report from Bank of Ireland.
The overall Pulse index reading was down slightly from May, the report calculated, driven largely by caution in the business community.
However, the consumer Pulse, effectively a measure of consumer confidence and activity, has risen to its highest level since the Brexit vote.
“There is a widely held belief that warmer weather acts as a mood boost. Judging by the results of the latest Consumer Pulse, this looks to be holding up with households more upbeat this month,” said Loretta O’Sullivan, the bank’s chief economist.
More than one-third of consumers think it is a good time to buy big ticket items, while two-thirds of those surveyed said they would save money over the coming year.
However, caution was widespread among business surveyed. Sentiment in the industrial sector was up marginally, but dipped in the retail, service and construction sectors. The report speculated that the dip in construction sentiment might be related to speculation over the future of the Help-to-Buy scheme.
Regionally, Dublin economic sentiment was up, but Munster sentiment was down.
