Consumer sentiment improves

CONSUMER sentiment has hit a three-year high on the back of improved job prospects and the potential for income tax cuts in December's Budget.

The overall IIB Bank/ESRI Consumer Sentiment Index improved in July to 96.6. This compares to a figure of 90.1 in June.

Turnaround in sentiment since the July 2003 low-point has been dramatic. All main elements of the survey posted increases last month, but once again the key driver of the rise was growing optimism towards the jobs market. A year ago, one in 20 consumers expected the jobs market to improve. Now one in four expect the jobless rate to fall in the next 12 months