Nervous markets but consumer confidence hits a 17-year high

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Financial reforms are needed to avoid the next big crisis, the head of the IMF said, although the recent sharp swings on the markets are not in themselves a cause for alarm.
Financial reforms are needed to avoid the next big crisis, the head of the IMF said, although the recent sharp swings on the markets are not in themselves a cause for alarm.

As rattled investors await a key US inflation report due on Wednesday, IMF managing director Christine Lagarde said she was "reasonably optimistic" about the strength of the global economy. However, she said financial reforms are needed to avoid the next big crisis, though the recent sharp swings on the markets are not in themselves a cause for alarm.

Given that international markets are so jittery, the fact consumer confidence in the Republic has hit its highest point in 17 years has been greeted with words of caution. KBC Bank Ireland chief economist Austin Hughes is at pains to point out that it doesn't signal a return to the economic boom.

In a similar vein, the latest Ulster Bank purchasing managers' index (PMI) for the Irish construction industry show it got off to a "strong start" to the year, posting faster increases in activity, new orders and employment.

The news was less positive north of the Border, however, as the number of shoppers declined, with shopping centres noting a 4.4 per cent dip in January.

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Michael McAleer

Michael McAleer

Michael McAleer is Motoring Editor, Innovation Editor and an Assistant Business Editor at The Irish Times