Feelgood factor dips in February

CONSUMER sentiment dropped unexpectedly in February from a four-year high in January and eroded retailers hopes of a spending boom until SSIAs (Special Savings Investment Accounts) begin to mature next year.

The overall IIB Bank/ESRI Consumer Sentiment Index fell to 99.5 in February, down from 106.8 in January of this year.

IIB Bank chief economist Austin Hughes said despite the fall in sentiment in February he thinks the underlying trend in both consumer sentiment and the broader Irish economy is improving. However, he believes the February data suggest we may still be some distance from a spending boom.