CONSUMER SENTIMENT increased in April for the fourth successive month as the public took a less anxious view of the economic environment.
The KBC Bank Ireland/ESRI consumer sentiment index, which looks at current and future economic prospects, rose from 60.6 in March to 62.5 last month.
It was the first time since January 2007 that the index has trended upwards for four months in a row. Any reading over 50 indicates a growth in confidence.
UK and European consumer sentiment has fallen in recent surveys with the US measure remaining flat, suggesting that domestic rather than global developments have improved the mood in Ireland.
“We remain a considerable distance from conditions in which a ‘feel-good factor’ might emerge,” KBC Bank said.
“While spending power is still severely constrained, a strong ‘precautionary’ motive for postponing major purchasing decisions could begin to slowly fade as the threat of sharply poorer economic circumstances diminishes.”
The sub-index of consumer expectations – based on people’s perceptions of their future financial and employment situation – increased from 51.2 in March to 51.7 last month.
The current economic conditions sub-index – which measures consumer feeling about finances compared to a year earlier and the buying environment – rose from 74.5 in March to 78.7 in April.
The survey found that one in two consumers were anxious that unemployment would increase over the next 12 months.
KBC Bank economist Austin Hughes said that, in spite of the positive survey, there was little to suggest a sharp increase in household spending would begin soon.
