Sentiment increases in first month of 2016

The overall KBC Ireland/ESRI Consumer Sentiment Index increased from 103.9 in December to 108.6 this month. The 3-month moving average also increased this month from 102.8 in December to 105.2.

Commenting on the results Daniel Foley, ESRI, said

“The consumer sentiment index rose for the first month of 2016, suggesting that consumer confidence continues to remain positive. The underlying trends for the main indices also continued upward indicated by increases in their 3 month moving averages.”

“There were mixed views in relation to consumers' expectations in January. There were worsening perceptions of the outlook for the labour market and economic conditions over the next 12 months. However, this was offset by an increase in consumers' expectations about their personal financial situation 12 months from now. The index rose marginally to 100.0 this month.”

“The largest gain this month was the component of the survey related to consumers' perception of the current buying climate. The buying climate strengthened in January indicating that households feel more confident with regard to decisions involving major household purchases. Historically this component has improved every January, reflecting, at least in part, the winter sales, followed by a more subdued figure in February. We expect this pattern to continue and as a result some moderation is anticipated next month.

“This contributed to an overall increase in the index of current economic conditions from 112.9 in December to 121.4 this month.”