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Consumers outside Dublin more optimistic about economic outlook - KBC/ESRI

Although there was a recovery in sentiment in early part of the year among consumers in the capital, this only reversed about half of the sharp deterioration seen in the previous quarter
Although there was a recovery in sentiment in early part of the year among consumers in the capital, this only reversed about half of the sharp deterioration seen in the previous quarter

Consumers in Dublin were more concerned over the economic outlook than people in the rest of the country during the first three months of the year, according to the latest KBC/ESRI Consumer Sentiment Index.

Although there was a recovery in sentiment in the early part of the year among consumers in the capital, this only reversed about half of the sharp deterioration seen in the previous quarter.

In its assessment, KBC says: "Our judgement is that a notable change in Dublin consumers' views of the broader Irish economy initially reflected the failure of a strong recovery in GDP to translate into corresponding gains in the circumstances of the typical household in the capital."

The survey also notes that more recently worries about a "potentially substantial adverse impact from Brexit as well as possible changes in US economic and tax policy may be a particular concern because of the importance of trade and multinational activities to the capital".

Meanwhile, for consumers outside Dublin recent gains put confidence close to the highs that were seen in late 2015.

The regional breakdown of Irish consumer sentiment data shows a broadly based and similarly scaled increase in confidence across the country in the first quarter of 2017.

The main driver of better consumer sentiment in early 2017 both in Dublin and in the rest of the country was a less nervous view of household finances.

The research also notes the improvement in consumers' perceptions of their personal financial circumstances was primarily driven by a drop in the proportion of consumers reporting deteriorating conditions rather than any marked increase in spending power.