Consumers ‘think worst is over’

CONSUMERS think the worst is over but still remain cautious about the year ahead, believing unemployment will rise as the economy shrinks further.

The latest consumer confidence index, which is a strong indication of the state of the economy, has stabilised at healthier levels than seen at any time since the first three months of 2008. Irish consumers ended 2009 in a cautious mood, but they faced into the new year with far less foreboding than twelve months ago, according to the KBC Ireland/ESRI consumer sentiment index.

The index stood at 53.3 in December, compared with 53.6 in November. The reading in December 2008 was 50.2. The index, which hit a record 12-year low of 39.6 in July 2009, was 62.7 in December 2007, well below the average of 96.