Consumer sentiment improved in May but remained well below the long-term average as the conflict in the Middle East continued to weigh on confidence, a survey showed today.<\/p>\n
The Credit Union Consumer Sentiment Survey climbed to 59.4 in May, a significant jump from a 40-month low of 53.3 in April, but well below the long-term survey average of 83.3.<\/p>\n
“It’s a pleasant surprise and it suggests that consumers are down, but they’re not entirely out,” said economist Austin Hughes, who authored the report.<\/p>\n
“It’s telling you that consumers here are still quite nervous and negative. No surprise there,” he said.<\/p>\n
The survey’s authors pointed to a ceasefire in the Middle East and the announcement of Government energy support measures as likely contributing to the improvement.<\/p>\n
“The improvement in May probably reflects the fact that responding to both the slight easing in tensions that we saw at the start of the month on global markets,” he said.<\/p>\n
“Probably more importantly in the Irish context, I think to the Government measures and the promise of more substantial measures to come in the October budget,” he added.<\/p>\n
Sentiment improved across all parts of the survey, including people’s outlook on their own finances and the wider economy.<\/p>\n
The outlook for jobs saw the biggest improvement in the month – which Mr Hughes said was likely a correction to a sharp move in the April survey.<\/p>\n
However he said Irish people remain very negative on the direction of the jobs market.<\/p>\n