Consumer Sentiment lower in March
The overall KBC Ireland/ESRI Consumer Sentiment Index decreased to 83.1 in March, from 85.5 in February. The 3-month moving average increased to 84.4 from 83.3 in February, a seven-year high and the eleventh consecutive increase.
Commenting on the results Kevin Timoney, ESRI, said
•†† †“The Consumer Sentiment Index fell 2.4 points lower in March, to 83.1 from 85.5 in February. The three-month moving average increased to a seven-year high of 84.4.
•†† †“The Index of Current Economic Conditions accounted for the much of the monthly decrease. Respondents viewed their current household finances and the buying climate for large consumer goods more negatively than in February.
•†† †“The Index of Consumer Expectations improved to 78.1 in March, its best level since January 2007. Labour-market expectations were especially positive, while the outlook for the general economy weakened.”
In addition, Austin Hughes, KBC Bank Ireland, noted:
•†† †“The small drop in consumer sentiment in March isn’t all surprising. It largely reflects an expected but fairly modest correction in spending plans when New Year sales finish and the flurry of new registration car purchases are largely completed. Our sense is that property related spending has also supported this element of the consumer sentiment survey in early 2014. As such, the small decline in the sentiment index in March doesn’t seem to suggest any break from a gradually improving trend in Irish consumer confidence.
•†† †“While we think that the mood of consumers is still continuing to improve, the small decline in the sentiment index in March suggests that a range of factors is restraining the scale of recovery. The most important reality for many consumers is that their personal finances remain under pressure. As a result, they are not in a position to step up spending even as fears about the Irish economy and the outlook for jobs ease. At the margin, the March results also show that weak data or renewed fears about the economic future are likely to raise questions about the durability of the upturn.”