Business and consumer confidence holds steady

More than a fifith of businesses plan to increase employment

The vaccination roll-out has done much to bolster confidence among both households and firms in recent months. Picture: iStock

Business and consumer confidence held steady in June as the impact of the reopening of outdoor dining and drinking beds down.

The latest Bank of Ireland business pulse index came in at 93.1 in June up 0.4 on last month and 37.2 higher than a year ago. The consumer index stood at 76.2 in June, 0.5 lower than last month but 18.2 higher than a year ago.

“After a string of strong gains, the Economic Pulse held steady in June," Dr Loretta O’Sullivan, Group Chief Economist for Bank of Ireland said. "The Consumer and Business Pulses were little changed this month, though looking at the components, expectations appear to have taken a step back, having done a lot of the heavy lifting to date, while current conditions took a step forward as the resumption of economic and business activity is no longer a hope but is materialising."

“Whether concerns around the Delta variant of the virus delay the move to the next phase of the re-opening plan remains to be seen, but with economic sentiment back above its pre-pandemic level, it’s clear that the vaccination roll-out has done much to bolster confidence among both households and firms in recent months.”

Within the Business Pulse, the Industry, Retail and Construction pulse jumped the most, up more than three points on the previous survey followed by construction, up 1.2 points. The June data points to growing positivity among firms about the current business environment, with improving order books/sales translating into jobs. Some 15% indicated they had increased employment in the past three months and over a fifth expect to do so in the period ahead, though rising non-labour input costs are a concern.

Within the Consumer Pulse, the further easing of restrictions prompted households to upgrade their assessment of the current economic situation this month, though they were a little more circumspect about the outlook amid some disquiet about variants of the virus. 

More than half still think the economy will get better over the coming year. The June survey also finds that three in ten households consider it a good time to purchase big-ticket items like furniture and electrical goods.