Irish consumer sentiment rose modestly in August as consumers responded positively to summer sales and falling oil prices, but the general outlook for the economy remained gloomy, a survey showed today.
The IIB Bank/ESRI Consumer Sentiment Index rose to 43.4 in August from 39.6 in July, which was the lowest level since the survey began 12 years ago.
The August reading marked the first improvement since January but was well below the 72 recorded in August 2007.
Economists expect Ireland's economy to contract in 2008, the first year of negative growth since 1983.
"It is too early to suggest sentiment is stabilising," said IIB Bank chief economist Austin Hughes. "But the fact that Irish consumers responded favourably to price discounting in the summer sales, falling oil prices and less threatening news on interest rates means they haven't entirely given up the ghost."
The forward looking expectations component of the August index rose to 25.8 from 23.3 in July, while the measure of consumers' perception of their current situation increased to 69.4 from 63.8 in the previous month.
Reuters