Survey suggests ‘two-speed recovery is here to stay’

A confidence gap between Dublin-based consumers and those living elsewhere in the country became evident in the first quarter of the year, a new survey shows, suggesting the concept of a ‘two-speed recovery’ may remain a feature of the economy for some time.

The consumer sentiment comparison study — measuring optimism levels of those within and outside of Dublin — from KBC Bank Ireland and the ESRI economic think-tank shows that while confidence among consumers in the rest of Ireland hasn’t changed in the past two quarters, those living in the capital reached a 13-year confidence high during the first three months of 2016.

KBC chief economist Austin Hughes said the readings suggest a “greater resilience” to mounting concerns over domestic and global economic risks among those living in Dublin compared to the rest of the country.