Consumer sentiment was little changed in November from October as Irish consumers fail to see an improvement in their household finances despite an improving economy.
The latest KBC Bank Ireland/ERSI consumer sentiment index stood at 85.3 in November, little changed from the reading of 85.5 in October.
KBC Bank said there appears to have been a clear drop in consumer sentiment in the last few months.
"Our sense is that the past couple of survey readings suggest a measure of disappointment and frustration at the failure of sustained and strong gains in various Irish ‘macro’ indicators to translate into a corresponding improvement in household finances at this point," commented the bank's chief economist Austin Hughes.
He said that the October Budget was intended to signal the end to austerity and begin to bridge the gap between impressive economic data and most people’s less impressive experiences.
"Instead, the recent controversy over water charges has acted as a touchstone for widespread concerns that the upturn is not delivering an expected improvement in living standards," he said.
The survey found that 51% of consumers anticipate an improvement in economic conditions in the coming year compared to 20% that expect some deterioration.
But it also showed that 46% of consumers indicated their financial situation had worsened in the past year compared to just 11% that experienced an improvement.
Consumers' spending intentions improved in November with 29% saying that now was a good time to buy major items compared to just 17% who thought it was a bad time.
Mr Hughes said that while this did not signal an impending consumer boom, it does hint at some positive momentum in Christmas spending.
