Irish business and consumer sentiment has recovered from the initial shock of the Brexit referendum, according to the Bank of Ireland’s Economic Pulse monitor.
The survey, which is based on querying 1,000 households and 2,000 businesses on a range of economic topics, saw a rise of 2.5 points in August, after falling 11.1 points in July, following the results of the Brexit vote.
The monitor’s sub-index for business rose 2.4 points in August, with the largest increases in industry (7.7 points) and retail (6.1). Construction rose also (4.6) while service fell slightly (-0.3). The results suggest businesses generally do not expect to change their prices soon.
The consumer index rose 2.8 points from July, with half of the consumers surveyed expecting a general improvement in economic conditions over the next 12 months.
Regionally, Dublin consumers were those most expecting price gains, at 74%. 70% of Munster expected the same, as did 64% of the rest of Leinster and only 54% in Connacht/Ulster.
Loretta O’Sullivan, chief economist at the bank of Ireland, had this to say: “While last month dipped significantly following the Brexit vote, August saw the Economic Pulse recover a quarter of the ground it lost in July. Although there has been a rise in sentiment, many consumers and businesses are still assessing the potential impact of Brexit. We will be closely monitoring the situation over the coming months.”
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