Irish investor confidence barometer enters positive territory for first time

Irish investors’ confidence in the country’s economy is on the increase, with 55% confident about the outlook for the economy over the next three months, compared to 37% last September.

The two-year-old index RaboDirect’s Investor Barometer, which measures sentiment among Irish investors, reached an all-time high in January, entering positive territory for the first time. The overall index now stands at 100.8, up from 86.9 in Sept 2012. Below 100 signals negative sentiment; above is positive.

Irish investors’ confidence in the global economy is even stronger, with 64% of respondents expressing confidence in the global outlook over the next three months. Just 34% were confident in Sept 2012.

Investment manager at RaboDirect Killian Nolan said that despite the increased confidence in the economy, optimism among investors about their financial situation over the coming three months was down slightly at 74% compared with 76% who were optimistic in September.

Investors are becoming increasingly favourably disposed to the global stock market, with 80% saying they see value to be had in stocks, compared with 72% in September.

“Irish investor confidence is much more upbeat at present, having stabilised somewhat in 2012. While there are still many challenges ahead for the global economy, uncertainty is now less of a factor and this is evident in the increasing numbers of investors looking at equities as an asset class, particularly in the emerging markets. That said, ongoing austerity measures in Ireland are taking their toll in terms of how investors view their personal finances, but that’s understandable just after December’s budget,” added Mr Nolan.