Figures from IIB Bank and the ESRI show that consumer sentiment improved in January as people became more willing to buy bigger items.
Their consumer sentiment index rose to 106.2 from 98.2 in December. The index for current conditions climbed sharply from 102.2 to 116.7, while the expectations index was up from 95.6 to 99.1.
But David Duffy of the ESRI pointed out that the current conditions part of the index had improved in every January, partly reflecting the effect of winter sales. This had usually been followed by a more subdued figure in February.
IIB economist Austin Hughes said consumers now appeared to be more confident in the underlying strength of the Irish economy. He said the increased willingness to buy was in line with buoyant car sales, a strengthening property market and a surge in tax revenues. 'This suggests the influence of the SSIAs may be beginning to be felt in earnest,' he said.
The economist said there did not appear to have been any fall-out from the recent rise in monthly mortgage payments.
