Four-year high for investor confidence

Investor confidence in the Irish economy has reached a four-year high with more than nine out of ten respondents to the Rabodirect Investor Barometer confident about its outlook over the coming months.

The barometer, which surveyed more than 500 RaboDirect customers, shows 91% of Irish investors are confident regarding the outlook for the economy over the next three months — an increase of 9% on the previous report published in June.

A decrease of equal proportions, however, was seen in optimism for the global economy which fell significantly, with 76% of Irish investors confident for its prosperity compared with 85% in June.

Events in Ukraine and Russia, as well as ongoing turmoil in the Middle East and a stagnating eurozone, have knocked the confidence of some Irish investors as the turbulent international scene continued into the autumn.

RaboDirect head of investments Killian Nolan said: “There has been an almost continuous stream of good news coming out of the Irish economy.

“Sentiment is less upbeat on the global front, where we’ve seen increased volatility in the markets. In the medium term, the outlook for the European economy is weighing heavily on investor sentiment, particularly on foot of a deteriorating outlook for the German economy,” Mr Nolan said.

Mr Nolan added, however, that historically low interest rates set the by the European Central bank — which look set to remain unchanged for some time — continue to benefit investors with 80% confident of their personal financial positions.