Consumer mood still recovering

As the positive sounds continue to emerge from the economy, consumer sentiment has recovered slightly but still remains below the long-term average.

Consumers are more willing to spend their money now then they were at any time in the last six years, according to the KBC consumer sentiment index, which hit a six-year high of 79.8 in December.

Chief economist with KBC Bank Ireland, Austin Hughes, said that the mood of the consumer was recovering from a very tough period.

“The December 2013 reading was the strongest in six-and-a-half years. As such, it points towards a clear improvement in the mood of consumers after what has been a very painful period.

“However, the number of consumers who think their personal finances will worsen in the coming year is more than two and a half times as great as the number that expects an improvement. This is likely to restrain any growth in consumer spending in the coming year,” he said.

In his report Mr Austin described the improvement in consumer sentiment as a “relief rally,” with consumers believing that they have finally emerged from the worst of the recession.