Irish consumer confidence stabilised in Decemeber but sentiment remained optimistic that the economy will improve in 2004.
The IIB Bank/ESRI Consumer Sentiment Index reported a reading of at 78.3 in December compared to 78.2 in November.
Commenting on the results Mr David Duffy, ESRI, said that while consumers' confidence of the current environment disimproved moderately in December,
perceptions of their current and future financial situation improved moderately.
The forward-looking sub-index, the expectations index, rose to 74.3 in December, from 72.6 in November. The index of current economic conditions declined to 84.4 in December from 86.6 in November.
Mr Austin Hughes, chief economist at IIB Bank, noted that the most positive aspect of the Irish consumer sentiment data has been greater optimism towards the general economic outlook. This likely reflects the global recovery as well as easing fears about Irish job prospects, the public finances and inflation, according to Mr Hughes.
Mr Hughes said that the only negative aspect of the December data was a drop in consumer spending plans. This tallies with anecdotal evidence from many retailers. "We think this reflects the anticipation of heavy discounting in post-Christmas sales which led Irish consumers to temporarily postpone 'big ticket' purchases," Mr Hughes concluded.