Munster Express Online

The overall KBC Bank Ireland/ESRI Consumer Sentiment Index rose slightly to 46.8 in April, which compares to the March figure of 44.1.

Commenting on the results, David Duffy of the ESRI stated: “Although consumer sentiment shows some improvement this month the index remains close to its lowest levels.

“The index of current economic conditions fell slightly to 75.1 from 76.2 in the previous month. However, the forward-looking expectations index rose to 27.7 compared to 22.5 in March.”

He added: “Although the overall index shows an increase, consumers remain concerned about their current household finances. Nearly half of those surveyed viewed their household finances as worse than a year earlier. “

Offering his two cents, KBC’s Austin Hughes said: “The slight improvement in consumer sentiment in April comes as quite a surprise.

Not only was there a very tough budget but there were also some notable job losses.

We should be cautious not to make too much of one month’s results but, taken at face value, the April sentiment reading points towards a greater measure of resilience among Irish consumers than might have been expected. This isn’t to suggest a turning point is close at hand but it may argue against a completely fatalistic view of Irish economic prospects.”

Mr Hughes said there are several possible explanations why consumer sentiment didn’t tumble in April.

“First of all, the Irish reading mirrors improvements in other countries that may reflect tentative green shoots in global economic conditions,” he said.

“Looking at domestic factors, it could be that the budget wasn’t as tough as feared. It might also take some months for the impact of budget measures to be felt.

“Equally, it may be that consumers recognise that painful measures are required to set the Irish economy on a sound footing.

“Finally, it should be remembered that lower interest rates and price cuts across a wide range of areas are helping Irish consumers handle what is without doubt an extremely difficult economic climate.”