Poll: 59% believe economy will fare better in next six months

The first small signs of the economic recovery being felt by consumers in a personal way have been detected by the latest Red C consumer mood monitor.

Three in five (57%) of those who believe the recovery is under way feel it is benefiting them personally.

However, a breakdown shows it is the younger age groups and higher social groups that are more likely to feel that the recovery is benefiting them.

The younger age groups are also most likely to spend more in the next six months.

The improvement in consumer confidence has yet to translate to increased spending, with most holding back until more signs of an economic recovery are evident.

The changed consumer mentality is the result of the economic crisis, the survey suggests. Some tightening of purse strings was still apparent despite a more optimistic outlook.

However, there has been a decline in the proportion of consumers who say they struggle financially to make ends meet — down from 32% last October to 27%.

Families and “empty nesters” have seen an improvement in their financial situation since October, but mature families are most likely to be struggling to make ends meet.

Only 31% of consumers believe they are living comfortably.

Almost three-quarters (72%) anticipate no increase in their grocery spend over the next six months and the survey suggests a discount price war could be influencing this.

Overall, the survey shows a further improvement in consumer outlook for the economy — three in four believe the recovery is under way in Ireland.

A little more than half (51%) believe the recovery is set to make the next generation better off.

Three in five (59%) now believe the economy will fare better in the next six months — up from 55% in October and 49% a year ago.

Women are significantly more positive now than in October, with 89% stating the economy will be the same or better six months from now — up 8%

A two-tier economy is still evident. While the rest of Leinster and Munster have caught up with Dublin, Connaught and Ulster remain behind.

The personal impact of the recovery has risen significantly in Munster — from 41% to 46% since June. Dublin is also at 46% while the rest of Leinster is at 42% and Connaught/Ulster is at 36%.

The outlook for the jobs and housing market has also improved according to the survey that is based on just over 1,000 telephone interviews.

More than half (54%) feel the jobs market would be better in the next six months. Just 13% said it would be worse.

And 53% feel the housing market would be better in the next six months while slightly less than one in five (19%) believe it will be worse.

A regional breakdown of the housing market shows the increase in positivity is mainly driven by people living in Dublin.

As for the world economy, the survey shows that expectations have recovered after dipping in October.

More than three-quarters (77%) of people believe the world economy will either improve or remain the same over the next six months compared to 88% for the Irish outlook.

A breakdown shows 43% of people expect the world economy to fare slightly better over the next six months. Just 39% felt the same last October.