Consumer sentiment improved significantly in April, according to the latest IIB/ERSI Consumer Sentiment index. The index jumped to 68.4 in April from March's figure of 62.8 - its highest level since September 2002.
While the improvement was broadly based, it was most pronounced in forward looking elements of the survey, particularly those relating to the broad economic outlook.
As in other countries, the ending of fears that the Iraqi war could have a major impact on global economic prospects was probably the key driver of the rise in this month's consumer sentiment index.
'However Irish consumer sentiment has not been as hard hit by war worries as corresponding confidence measures for most other economies,' says IIB Bank's Austin Hughes. 'This April reading may also hint at an underlying improvement in domestic economic conditions,' he said.
'The April results should encourage the view that sentiment is stabilising at levels that are consistent with modest growth in Irish consumer spending in coming months,' he added.
The ESRI's David Duffy said the April improvement is mainly due to a more positive perception by Irish consumers of future prospects. The forward-looking sub-index, the expectations index, rose to 56.9 from 49.2 in April. This rise is mainly due to the improvement in consumers view of the general economic outlook.
'Irish consumers appear to have become more positive about the general economic outlook,' he said. 'However, their response to a question on the outlook for the labour market indicates that they remain cautious about job prospects, with a more subdued improvement in this component of the indices, he added.
