Consumer confidence was moderately lower in December signalling that while many people are less nervous about their economic situation than in previous months, few are expecting a dramatic improvement in conditions this year.
The latest KBC Ireland/ESRI Consumer Sentiment Index was 53.3 last month, compared to 53.6 in November and 50.2 in December 2008.
In addition, the three-month moving average rose to 53.7 compared to the 52.5 recorded in November. In December 2008, the three-month moving average stood at 45.6.
The consumer sentiment index comprises two sub-indices; an index of consumer expectation that looks at how consumers view prospects over the next 12 months and an index of current economic conditions, focusing on the present situation.
The index value of consumers expectations, which is based on consumers’ perceptions of their future financial situation, the economic outlook and employment expectations stood at 40.1 in December compared with 37.7 in November.
Meanwhile, consumers’ perception of their current situation weakened in December to 73 compared to 77.1 a month earlier.
According to the data, one in five consumers expect the economic situation to get better, although just one in ten anticipate an improvement in the labour market.
"The December sentiment survey was largely completed before the Budget. Pre-Budget speculation made many consumers very nervous about the possible impact of cutbacks in welfare and public sector pay on their household finances in 2010, said Austin Hughes, chief economist with KBC Ireland.
"It seems that consumers have sensed signs of a turn in the economy. However, many worry they may not share in any improvement,” he added.
