Consumers’ mood still ‘very gloomy’

Consumer sentiment increased for the second straight month in February, but the overall mood remains “very gloomy”.

A marginal rise from 56.6 to 57 points in the latest Consumer Sentiment Index, jointly published by KBC Bank and the ESRI, suggests consumers’ extreme fears from late 2011 have faded, with an easing in job concerns a key driver in the rise in confidence.

However, with household finances — including increases in charges, insurance costs and fuel bills — still a major worry and uncertainty likely to be boosted by debate over the EU fiscal referendum, the authors of the index have remained muted in their outlook, saying sentiment is still “very gloomy”.