Irish consumer confidence rose last month as worries about job losses and personal finances eased, a new survey showed today.
The KBC Ireland/Economic and Social Research Institute (ESRI) Consumer Sentiment Index rose to 61.9 in March, compared to a February reading of 59.4, as consumers began to show a little less pessimism about their own personal financial situation, despite general apprehension about the economic outlook remaining.
"The results for consumer sentiment indicate some improvement in March as consumers perception of the current environment improved. This is primarily due to a more positive perception of the buying environment for major household durables," said the ESRI's David Duffy.
"The index of current economic conditions increased to 87.6 from 78.8 in February, while the expectations index fell from 46.3 in February to 44.5 in March. The decline in the expectations index primarily reflects consumers continuing to have concerns about the overall economic outlook."
The index hit an all-time low of 39.6 in July 2008. However, today's readings appear to indicate that the worst may be over, although it remains below its 14-year average of 91.6.
Forecasts estimate that the economy will return to growth in the second half of the year, and will record growth of between 2.4 per cent and 2.8 per cent in 2011.
"It should be emphasised that consumers remain very cautious and there is little prospect of a spending spree anytime in the foreseeable future but we may be at or close to a turning point in household spending," said KBC Ireland's chief economist Austin Hughes.
