Irish consumer sentiment showed a significant improvement in May following the COVID-19 related collapse in confidence in April, research shows.
According the the latest KBC Bank consumer index, the planned easing of the lockdown and an improving trend in health are the likely drivers for the month on month increase.
However, the data showed that Irish consumers are still very worried about their current circumstances and prospects.
"While the improvement in sentiment between April and May should be seen as encouraging, the level of the May sentiment survey remains comparable with responses seen through the more difficult moments of the financial crisis and is within the lowest 5% of readings in the survey’s twenty four year history," Austin Hughes, chief economist at KBC Ireland, said.
"Given the traumatic and widely felt hit to incomes (and asset values) in recent months the finding in May that just 3% of consumers felt they were better off than twelve months ago while 39% felt they were worse off is not entirely surprising," he added.
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