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According to the latest KBC Bank Ireland consumer sentiment index, Irish consumer confidence is at a two-year high.

The monthly reading for May averaged 85.8 whereas the figure for June was 87.2. Despite this only being marginally higher, this increase was enough to push confidence to a 24-month high.

Not only this, but the reading for June pushed the sentiment index back in-line with the 25-year average of 86.8.

Austin Hughes, KBC Ireland’s chief economist said, “It could be argued that sentiment has now normalised”.

Demonstrating a relieving and positive shift, Mr Hughes also said that these results suggest Irish consumers are becoming less worried about the current circumstances and less fearful for the future.

Mr Hughes stated that June marks the fifth successive monthly increase in the KBC Bank consumer sentiment index. This is the first time it has occurred since the beginning of 2007.

The KBC Bank sentiment survey has demonstrated that June should mark a further incremental improvement in the mood of Irish consumers, rather than any dramatic change. Four of the five main elements of the survey indicate relatively modest gains in June in comparison to their May readings.

What has impacted this shift?

The re-opening of the economy will have contributed profoundly to the clear easing in nervousness about the Irish economy in June.

Better yet, the survey revealed that this element registered its best reading since November 2018.

However, the May survey also highlighted negative views on the economic outlook regarding concerns over Brexit.

What about the jobs market?

The survey revealed that there was a marginal improvement in the outlook on the jobs market in June. Nevertheless, Mr Hughes believes that with many returning to work, a larger uptick might have been expected.

There are concerns about the damaging impacts on employment aspects of those in areas not yet opening, such as nightclubs and other hospitality, which may have dampened this element.

What about personal finance?

In terms of personal finance, the survey demonstrated that consumers had a more positive outlook in June.

However, there was a limited increase in purchasing plans. It appears that consumer spending will “bloom”, rather than “boom” this summer, Mr Hughes explains.

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