Poll: One in five expect economy to improve
According to the latest credit crunch report issued by Red C yesterday, one-in- three people are likely to increase their spending as a result of a more positive outlook on the economy.
However, the poll of 1,000 people found more people than ever expect to be impacted by the recession.
Some 43% of people said salary cuts or the fear of being hit with a salary cut had impacted upon their lifestyle, while more than a third were worried about losing their job.
This was particularly evident among part-time workers.
However, despite the doom and gloom people are showing signs that they feel the worst may be over.
While the outlook for the world economy remains the most positive, the poll shows consumer confidence for the Irish economy is also improving with one-in-five now expecting the economy to fare better in the next six months.
Younger people and men have the most positive outlook. In the 18-to-34 year old age bracket, 45% expect the economic situation to improve in the coming six months.
Bloxhams economist, Alan McQuaid, said the poll reflected people coming to terms with the recession.
“I think it probably reflects the views of economists and other commentators who are less pessimistic about the economy than previously.
“People are coming to terms with the downturn and while everything is not rosy, the worst is over and at least we are heading in the right direction,” he said.
This more positive outlook can also be seen in terms of attitudes to the housing market and job security with 17% of people expecting an improvement in both areas in the next six months.
At the time of the last Red C credit crunch report in July, 14% of people expected an improved housing market, while only 8% expected to see an improvement in their job security
The poll shows that people are eager to start opening their wallets again with one third of people saying they are likely to increase their spending.
The poll showed that the major beneficiaries of this first wave of increased spending during the recession are expected to be socialising and groceries.
A total of 31% said that they would increase their spending on consumer goods and services in the next year, while 36% said that they would begin taking short breaks and holidays.
However, the poll indicates that with more people than ever impacted by the recession, the increasingly cheery attitude towards the economy is fragile and could easily be reversed by increasing taxes and salary cuts.
