Irish consumer sentiment dropped sharply in October, highlighting the growing worries about the resurgence of Covid-19, according to a new survey.
The KBC Bank consumer sentiment index fell to 52.6 in October, from 60.7 in September, marking its lowest level in five months. The year’s highest reading was 85.5, in January, before the first case was made public.
The survey was conducted either side of the 13 October budget and before the latest series of Covid-related restrictions.
Austin Hughes, KBC Ireland chief economist, said: “The current level of the sentiment survey points to a very nervous Irish consumer. The largest weakening was seen in consumers’ expectations for their financial circumstances over the next 12 months and likely reflects increased nervousness about the lasting impact of the coronavirus and related restrictions.”
Hughes added that those who were surveyed after the budget were less negative, adding that a relatively limited downgrade of household current finances and spending plans was “one small positive.”
NAM Implications:
- Key issue is whether this reduction in sentiment has arisen from the post-lockdown economic hangover coming through the pipeline.
- …or in anticipation of further economic damage being done by a resurgence..
- This also has to be an issue for other geographies..
- All breeding new entrepreneurs that see opportunities in unprecedented change…
