| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Jul 5, 2012 - 7:58 AM


Irish Economy 2012: Consumer Sentiment Index increased slightly in June
By Finfacts Team
Jul 4, 2012 - 2:08 PM

Email this article
 Printer friendly page

Irish Economy 2012: The overall KBC Bank Ireland/ESRI Consumer Sentiment Index increased to 62.3 in June from 61.0 in May. The Index for June 2011 was 56.3. The 3-month moving average rose to 61.9 in June from 61.4 in May.

The Consumer Sentiment Index comprises two sub-indices; an index of consumer expectation that focuses on how consumers view prospects over the next 12 months and an index of current economic conditions, focusing on consumers’ present situation.

The Index of Consumers Expectations is based on consumers’ perceptions of their future financial situation, their economic outlook for the country as a whole and employment expectations. This sub-index decreased from 50.6 in May to 49.5 in June.

The Index of Current Economic Conditions is based on how consumers feel about their current financial circumstance compared to 12 months ago, as well as their perception of the current buying environment for large household purchases. The Index of Current Economic Conditions increased to 81.4 in June from 76.4 in May.

The data was obtained from telephone interviews during the first two weeks of the month with around 800 completed questionnaires. The data were re-weighted in line with gender, age and level of educational attainment to ensure the data is fully representative of the national population of adults.

Each index is calculated by computing the relative scores (the percent giving favorable replies minus the percent giving unfavorable replies (the balance), plus 100) for each question used in the different indices. Those who reply “Don’t Know”, “Remain the same” are excluded from the index calculations. Each relative score is rounded to the nearest whole number. The sum of the relative scores is then divided by the base period total for each index.

Commenting on the results Eddie Casey, ESRI, said: 

  • “The latest Consumer Sentiment index reveals a slight increase in June, with most of the previous month’s decline having been reversed. Despite some recent hesitation, the broader trend reveals a gradual recovery in sentiment since the end of last year.

  • “In June, an increase in the current economic conditions sub-index more than offset a modest decline in the forward-looking sub-index. Overall, the improvement in sentiment appears to have reflected less negative perceptions of the current environment, with consumers reporting a slight improvement in the buying climate and their financial situations.

  • “Consumers remain concerned that the economic outlook remains fragile, however, with a downward revision to the expectations for employment and the general economic environment weighing on the increase in sentiment in June.

  •  “The index of current economic conditions rose to 81.4 in June from 76.4 in May, while the index of consumer expectations fell to 49.5 in June from 50.6 in the previous month.”

 In addition, Austin Hughes, KBC Bank Ireland, noted: 

  • “The fact that the rise in sentiment in June largely offset the decline in May emphasises the patchy nature of the improvement in the mood of Irish consumers through the first half of 2012.  In view of the difficult and uncertain economic backdrop facing Irish consumers, this sort of jagged pattern about a modestly improving trend is probably as much as can be expected.  If sentiment continues to improve modestly through the remainder of 2012, this would seem consistent with a gradual stabilisation in consumer spending.”

  • “The June results show a divergence between the greater concern expressed about the broad economic outlook and a little less pessimism in relation to households’ own financial situations.  This may reflect a ‘silver lining’ in terms of lower oil prices and a possible drop in borrowing costs that accompanied darker Euro zone clouds.  It should also be noted that the improvement in sentiment in June largely reflects a drop in negative responses rather than any marked increase in positive replies.  So, there is no sense Irish consumers expect any dramatic improvement in their circumstances that would prompt much stronger spending.”

Hughes added: "The slight rise in Irish consumer sentiment in June was at odds with a deterioration in similar indicators for the US and the Eurozone. The comparable US indicator, compiled by the University of Michigan, dropped to its lowest level since December. However, this was the first decline reported in the past ten months during which time the Index climbed to a five year high. So, the factors influencing the mood of the US consumer of late appear somewhat different to those weighing on their Irish counterparts.

The Euro area confidence gauge weakened somewhat in June. Uncertainty over the future of the single currency area combined with the near certainty of further budget austerity implies poorer prospects for European consumers. So, their mood has remained relatively downbeat through the first six months of this year. Compared to results for the Euro area, the slight improvement in Irish Consumer Sentiment in June is encouraging and probably reflects different judgements on the part of consumers in Ireland and elsewhere on the implications of the broadening of the Euro area crisis in the past year or so."

Check out our new subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

It's a simple fact that in the prevailing economic climate, the provision of high quality content cannot be sustained through advertising alone. 

Business executives who put a premium on time and value high quality information, should use our service.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March
Irish Spring Statement: Coalition's unofficial launch of general election campaign today
Spring Statement: Coalition visionless on Irish economy's long-term challenges
Ireland is 3rd most expensive location in Eurozone for consumer goods & services
Ireland: ESRI research shows income of poor fell most during recession
Ireland: Spring Statement - Ibec seeks income tax cuts; higher public spending
Irish Economy: ESRI says recovery remains strong; Warns about vote-buying Budget
Burton in Boston begs Berlin to back Budget election bust
Dell hugely benefited from Irish, Dutch, Singaporean tax havens
Ireland: Cash outflows of €20bn in crisis years 2010/11 remain unexplained
Irish GDP up 4.8% in 2014, GNP up 5.2%; Goods exports up 23% on tax deals
Ireland: Financial services 'strategy' a menu of 30 steps; 24,000 or 35,000 jobs?
Irish industrial production fell slightly in January
US study on FDI into Ireland flawed; Ambassador says "incredible"
Irish pensions funds performed strongly in February
Irish Live Register + activation numbers at 440,680 in February; Broad jobless rate at 20%
Growth of Irish service sector slowed in February but remained sharp
Irish tax revenue to end-February 2015 up €345m on budget target
Irish manufacturing PMI highest in February since 1999 - maybe a fairytale?
Low pay and high pay in Ireland
Irish Economy 2015: Retail sales volume up 8.8% in 12 months to January
Irish Economy: Only 8% of 90,000 jobs added in 2013/14 in Industry/ ICT sectors
Irish economy adds 29,000 jobs in 2014; Labour force down 10,500; Broad jobless rate 19%
Ireland: Only 3% of Irish SMEs are active in manufacturing - Part 2
Benchmarking Irish food & drinks industry in 2015 - Part 1
Irish Economy: Davy looks at political risks to economic recovery
Irish overseas 'contract manufacturing' mainly tax avoidance
Ireland 2016: "Best small country in the world" for business? - a FAIL
Irish Boom & Bust: Could conventional wisdom be fooled again?
Benchmarking income tax to attract Irish emigrants home - spin or substance?
Irish pension managed funds began 2015 with strength
Irish per capita net worth at €124,523 in Q3 2014; household debt at €34,846; Earnings €35,830
Wild swings as Irish industrial production plunges 12.7% in December 2014
Ireland: McKinsey not as sanguine as Noonan on debt sustainability