Survey shows fall in investor sentiment

Fewer than half of Irish-based investors are confident about the country’s short-term economic prospects, a survey shows.

The investor barometer from online savings bank, RaboDirect — which is formally published today — also shows that Irish investors are growing more pessimistic regarding their own financial position over the next three months.

The survey shows that 48% of Irish investors are confident regarding Ireland’s economic outlook over the next three months.

While still a relatively strong reading, it is down from a more healthy one of 53% taken in June.

Similarly, while some 74% of respondents are optimistic about their financial position, this reading is down by nearly 10% since the last edition of the barometer just three months ago.

Given the timing of the survey — coming up to the earlier-than-usual budget — the results cannot be viewed as being too surprising, according to Killian Nolan, investment manager at RaboDirect.

“Domestic factors are having an impact, with reduced optimism about the Irish economy having a knock-on effect on how investors view their overall financial situation.

“To a certain extent, this is unsurprising in the run- up to this year’s budget, as investors take stock of the possible impact additional austerity measures will have on their disposable income and the wider economy,” he said.

All the same, Irish investors are becoming more confident about the global economy — with 73% optimistic for the short- term outlook — and the domestic property market; with 42% now saying they would be open to investing in the next three months. The latter reading was up from just 31% in June.

The survey also shows a fall in risk appetite, when it comes to overseas investing, with more people re-focusing on Europe rather than emerging markets and Asia. There is also an evident increase in the number of investors looking at cash as a safety play.

“This may be down to the good run global markets have had over the last three years and investors taking profit at this stage,” said Mr Nolan.