| 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
403 Forbidden

Forbidden

Execute access is denied.


© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Irish Economy 2015: ESRI expects GNP to grow 4.6% before adjustment
OECD provides update on BEPS corporate tax reform project
Irish Economy: ESRI says low income people biggest losers from Budget 2015
Irish Economy: Annual consumer inflation at 0.1%
Irish Economy: Flat growth in Q3 maybe noise?; "Spectacular" recovery continues says Ibec
Irish Economy: GDP flat in third quarter of 2014; GNP up 0.5%
Financial Times: Tax deals raise questions over Ireland’s growth spurt
Irish Economy: ESRI says “two-tier recovery” reflects unaddressed problems in boom years
Irish tax burden in 2013 in GNP terms similar to UK's; Down from 2000
Ireland to EU: 'Give us money for Irish Water'; 'Shut your trap and feck off'
New Irish private car sales up 29% to 91,380 in year to November; 2007 peak at 180,754
Irish Economy: Report says voter-friendly Budget not on horizon for several years
Ireland: Bord Gáis Energy Index plunges to 4-year low; Brent oil dips 18% in November
Irish Economy: Industrial production up 38.5% in 12 months - employment falls!!
Corporate Tax Reform: Ireland on sidelines as big countries make big moves
Irish pension managed funds delivered strong returns in November
Irish Live Register + public scheme numbers in November at 451,000 - 21% of workforce
Irish service sector PMI rises again - usual reality warnings apply
Irish Exchequer deficit at end-November 2014 at €5.8bn
Irish manufacturing PMI rises again in November - boosted by overseas production
Irish Water, legal fees and an enduring Victorian secrecy
Irish Economy 2014: Tourism activities account for half the jobs added since Q1 2011
Irish Economy: Kenny sets up likelihood of Dutch Auction on tax at next general election
Ireland: Superlatives galore - with economy achieving "escape velocity"
Analysis: Irish full-time employee numbers up 14,000 in year; Broad jobless rate at 21%
Irish Economy 2014: Net jobs grew by 27,700 in 12 months to third quarter
Irish Economy: Average hourly total labour costs fell 1.9% in four years to Q3 2014
43% of rise in H1 2014 GDP from manufacturing overseas - Irish Fiscal Council
Irish Pensions: 50% of all 35-45-year-olds have no occupational pension
Key Irish legal services reform parked in Limbo
Irish Economy: Annual price rises dip to 0.2% in October
Irish Economy: Merchandise exports down 3.8% in third quarter
Bruton back in US to reassure investors on Irish tax - can he?
Hidden Taxes Report: Kenny denies Irish special Apple tax deal despite contrary "evidence"
Irish private cars licensed for first time rose 6.7% in October
Irish pension managed funds had mixed performance in October
Irish Jobs: Policy flaws require Bruton's focus not spinning for headlines
Trichet's letter on Irish bailout has no surprises - Update
Irish Economy 2014: Industrial production up 3.3% in September; Sales value down 0.1%
Official Irish services index shows rise of 1.1% in September after August drop of 1.3%