Consumers more relaxed on spending, survey shows

FIGURES published yesterday hint at better times ahead for the economy – with nearly 50% of people thinking the recession will be over within the next 12 months and new home registration figures increasing sharply.

The latest edition of the monthly AIB/Amárach Consulting “Recovery Indicator” index showed a reading of 23.8 for May, up from 16.3 for the same month last year. Fewer than four-in-10 Irish people now think the economic situation is bad and getting worse, as opposed to seven-in-10 people, this time last year.

The index also showed the amount of those who think the economy is currently showing signs of recovery has gone from 8% a year ago to 25%; while the amount of people who feel the recession will have totally run its course inside the next 12 months has gone from 34% to 42%, on a year-on-year basis.

The latest findings also show that paying off debt remains most people’s financial priority, but consumers are becoming more relaxed again with regard to spending.

The amount of people saying they are continuing to save their money “a lot more” has actually declined – on a year-on-year basis – from 37% to 26%.

Young people in general, and females in particular, are the most optimistic about the economy. Paying off debts remains a major financial priority: for 61% of all adults in May 2010, unchanged since October 2009.

Consumers appear to be more relaxed about spending: 15% in 2009 compared with 19% now and numbers “saving a lot more” has declined from 37% in May 2009, to 26% currently.

The AIB-Amárach Recovery Indicator (ARI) is a monthly tracker of 1,000 Irish people’s views about the recession and recovery.

Meanwhile, home cover specialist, Homebond has said May saw a marked increase in the number of new homes being registered.

The home registration and insurance outlet said 456 new homes were registered in May, compared with 205 in the same month last year and 179 in April of this year.

While an indication that activity in the housing market is finally picking up, the latest figures are still well below the high of nearly 1,300 registrations made in May of 2008 – although August of that year also saw the lowest number in more than a decade.