Tuesday 27 September 2016

Consumers recover confidence after UK's EU vote

Published 08/09/2016 | 02:30

Consumers are positive about the economic prospects for the country, but also conscious of
potential downsides. Photo: Lauren Hurley/PA Wire
Consumers are positive about the economic prospects for the country, but also conscious of potential downsides. Photo: Lauren Hurley/PA Wire

Consumers have recovered some of the confidence they lost following the Brexit vote.

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New figures show the consumer confidence index rose in July after being hit by the Brexit vote in June.

Consumers are positive about the economic prospects for the country, but also conscious of potential downsides.

Jobs announcements are making householders more optimistic. The KBC Bank Ireland/ESRI consumer sentiment index increased to 102.7 in August, a 3.1-point monthly gain. This reversed most of the 3.8-point drop in July. The August reading is above the historic average of the sentiment series, but only matches the average of the past 12 months.

KBC Bank economist Austin Hughes said the recovery in confidence was because consumers have realised the British vote on EU membership may not be the calamity some feared. "The UK's Brexit vote didn't cause the economic sky to fall even if it made it a lot cloudier," he said. The absence of an immediate Brexit fallout coincided with evidence of the continuing health in the Irish economy, he added.

But Mr Hughes said the August survey hints that consumers are still cautiously optimistic in relation to the outlook for the economy.

Irish Independent

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