Consumers adopt wait and see policy on prospects for economy
The index rose fractionally this month to 97.4 from 97.3 in April, but IIB Bank chief economist Austin Hughes said this change is not large enough to be significant. “These results suggest that while the underlying trend in consumer sentiment remains broadly positive, consumers are now in a ‘wait and see’ mode as they attempt to make sense of apparently contradictory economic signals. This stance may dampen growth in household spending in coming months,” he predicted.
And David Duffy of the ESRI noted that the forward-looking component, the expectations index, was down in May to 89.2, from 91.9 in April but is above the reading of 85.5 recorded in May 2004.
