Ireland Consumer Confidence At 7-Month High On Easing Price Pressures
January 26 2023 - 01:33AM
RTTF2
Irish consumer confidence improved at the start of the year to
the highest level in seven months amid a let up in the cost of
living crisis due to a drop in inflation after Christmas, survey
data from Credit Union and Core Research showed on Thursday.
The Credit Union consumer sentiment index rose to 55.2 in
January from 48.7 in December. This was the highest reading since
June, when it was 57.7.
Christmas was challenging for many as they faced a
cost-of-living crisis, hospital overcrowding, weather warnings and
concerns over the war in Ukraine, the survey said. However,
consumers appeared hopeful after the post-Christmas period as
inflation continued to drop at the end of the year.
"The switch over Christmas and new year away from the normal
routine to less news-focussed time spent with family and friends
may have eased consumer concerns somewhat," Credit Union said.
That said, the current level of the index remains well below the
85.6 point average of the now 27 years of Irish consumer sentiment
survey data.
"This suggests Irish consumers remain very much aware of the
economic and financial challenges that the new year holds," Credit
Union said.
Recent data showed that consumer price inflation eased to 8.2
percent in December from 8.9 percent in November. The slowdown was
largely attributed to a reduction in utility costs and a decrease
in transportation costs.
All five sub-indexes of the consumer confidence survey improved
in January. The strongest month-on-month changes were in those
elements of the survey focused on household finances, rather than
the broader economic climate.
"As we continue to monitor the public mood, we will look to
explore if this positivity is a temporary dip, quashed by the
reality of many receiving their winter energy bill or if it
signifies a more lasting upward trajectory for the mood of the
nation," Emma Kavanagh, research director at Core Research,
said.
The survey was carried out from January 4 to 16.
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