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Better jobs news calms consumer mood

Consumer index stable after volatile few months
Consumer index stable after volatile few months

A survey which measures how consumers feel about the economic outlook was steady in February.

The consumer sentiment index, compiled by KBC Bank and the ESRI, moved up slightly to 57 from 56.6 in January.

The index had recovered in January after a sharp drop in December.

Cormac O'Sullivan of the ESRI said consumers were responding positively to news of job announcements.

"The period from October to January was one of exceptional volatility in sentiment as consumers grappled with uncertainty. The relative stability of the Index in February is welcome in its own right," he said.

KBC economist Austin Hughes also described the figure as "encouraging". He said that consumers remained cautious, but there was also a sense that things were not as bad as had been feared in December.

Only one in ten consumers, however, expect an improvement in their personal finances in 2012, compared with half who expect a deterioration.