Consumer confidence slips on global concerns, higher costs
Sentiment weakens considerably but consumers remain broadly positive
The survey suggests the typical Irish consumer is not seeing any marked improvement in their household finances. Photograph: Krisztian Bocsi/Bloomberg
Consumer confidence fell to its weakest level in 13 months in June on the back of increased global political uncertainty and higher costs.
The KBC Bank/ESRI Irish consumer sentiment index slipped to 102.1 from 106.7 a month earlier. This marks its poorest reading since May 2017.
While sentiment weakened during the month, the mood of Irish consumers remains broadly if guardedly positive.
KBC chief economist Austin Hughes said while the June reading suggested Irish consumers were being more cautious he added that they are still “modestly positive about their prospects.”
“The significant drop in Irish consumer sentiment in June seems to reflect a notably more threatening global economic outlook as similar declines were seen in confidence measures in many other countries last month. In addition, continuing pressures on household finances mean Irish consumers are more susceptible to bad news,” said Mr Hughes.
“The survey suggests the typical Irish consumer is not seeing any marked improvement in their household finances. So, spending growth is constrained. In addition, consumers were probably postponing purchases ahead of summer sales and their own holidays,” he added.