Modest increase in consumer sentiment in October

Friday 01 November 2013 12.00
Sentiment rose to its highest figure since June 2007 but was still below the index's historic average
Sentiment rose to its highest figure since June 2007 but was still below the index's historic average

There was a modest improvement in consumer sentiment last month, according to the latest survey by KBC Bank and the ESRI.

Their Consumer Sentiment Index rose to 76.2 in October, compared to 73.1 in the previous month; the strongest reading since June 2007.

There have been six monthly increases in the index so far this year, according to KBC Bank, however the four monthly declines recorded suggest a degree of volatility.

The bank also notes that the index for October, while improved, is still below the 85.2 average recorded over the 17-year-old survey.

The October rise in Ireland outpaced euro zone confidence, however, and is also ahead of sentiment in the US.

Household finances was the only component to see a drop in sentiment. This can be broadly attributed to nervousness around Budget 2014, which had not been delivered by the time most of the survey’s interviews had taken place.

Meanwhile the view of the broader economy showed continued improvement, largely due to the reduction in the number of people with a negative outlook.