Rising house prices bolsters consumer confidence but sentiment still cautious

Consumer confidence decreased slightly in August, suggesting the underlying trend in Irish spending remains weak, however there are signs emerging that consumers are feeling slightly better due to house prices rising.

The KBC Bank Ireland/ ESRI Consumer Sentiment Index decreased to 66.8 in August from 68.2 in July, though the three-month moving average continued to increase.

With summer sales over, and back to school demands on household budgets looming for many families, consumers were less willing to spend money on large purchases such as TVs, furniture and appliances in August, the index showed.