Irish consumer sentiment slides to 20-month low

Irish consumer sentiment slid to a 20-month low in October, according to survey results published on Tuesday.

The index, compiled by KBC Bank Ireland and the Economic and Social Research Institute (ESRI), is based on monthly surveys with Irish consumers.

It fell to 97.3 in October from 102 in September, its lowest level since February 2015.

KBC Bank Ireland chief economist Austin Hughes said the drop in consumer sentiment in October was not dramatic, but was still enough to push the sentiment index to a 20-month low.

"This suggests that the average Irish consumer is concerned about increasing risks to the economic upswing and, probably, of greater importance, is increasingly disappointed that what they hear described as an exceptional recovery in Ireland's economic circumstances has not delivered more in terms of improved living standards for them," he said.

"In this sense, the survey mirrors disappointing recent readings in comparable U.S. sentiment indicators that have found expression in the fractious tone of much of the U.S. presidential election campaign," he added.

The Irish economist said the survey was largely taken in the run-up to the 2017 budget when the limited nature of tax cuts and benefit increases was being flagged.

"As many consumers may see previous 'austerity' measures as central to their current financial difficulties, disappointment at the current pace of progress in reversing such measures may have prompted a notably gloomier assessment of personal financial circumstances in the October survey," he said.

Meanwhile, Daniel Foley, a research assistant from the ESRI, said the decline marked a continuation of consumer nervousness relating to the outlook for next year.

"This consisted of falling sentiment in relation to both the economic outlook and future employment prospects," Foley said. Endit