Irish consumer confidence improved marginally in June, research has shown.
According to the Credit Union Consumer Sentiment Index (in partnership with Core Research), while the general tone of the survey suggests that concerns are easing, they are far from over.
The details of the June survey indicate that consumers are still cautious about their own financial circumstances and the broader economic outlook.
Food Price Cuts
The June survey period saw high-profile announcements of cuts in some retail food prices, as well as media reports of forthcoming cuts in energy costs.
With Irish headline inflation also easing further, the relevant news flow likely prompted a view that the intensity of price pressures over most of the past year may be past its peak.
“These developments meant consumer thinking on both past and prospective household financial circumstances improved clearly but still cautiously in June,” commented analyst Austin Hughes.
“As noted previously, consumers may sense that the pace of increase in consumer prices may be slowing, but they know it remains rapid and well above the pace of income growth for most Irish households.”
Extremely warm and sunny weather through the survey period may also have helped boost sentiment, the survey showed.
“However, previous work failed to find a clear and consistent correlation between weather conditions and Irish consumer sentiment – probably reflecting the very variable nature of the Irish weather that means the average monthly sentiment reading typically encompasses a wide range of ‘sunny spells and showers’,” Hughes noted.