Consumer confidence levels hit two-year high

KBC Bank Ireland’s monthly consumer confidence study shows optimism levels returned to pre-pandemic levels in May to reach their strongest level since June 2019

Irish consumers are feeling more confident about their household finances, their job prospects and the broader economy than at any time in the past two years, a survey shows.

KBC Bank Ireland’s monthly consumer confidence study shows optimism levels returned to pre-pandemic levels in May to reach their strongest level since June 2019.

“Our sense is that the key driver of the pick-up in confidence was the developing story of increasing vaccinations and declining virus incidence in Ireland,” said KBC Bank Ireland chief economist Austin Hughes.

“Stronger sentiment in May was driven by easing concerns about jobs and the general economic outlook as well as an improvement in thinking about household finances and spending.

“A view among Irish consumers that, in terms of economic and financial risks, the worst of the pandemic may be behind us meant that, in May, the index recorded an increase for four consecutive months for the first time in more than five years,” Mr Hughes said.

He said the survey results suggest that Irish consumers are increasingly focusing on a post-pandemic world and are beginning to consider what the “next normal” might look like.

Reporting: The Irish Examiner