People more positive about spending, consumer poll shows

Consumers are starting to open their wallets and spend again — particularly on holidays and socialising.

According to the latest Red C consumer mood monitor, there is now a strong positive trend in how people see their personal finances compared to just a year ago, with one in three householders saying that they are comfortable financially.

Despite this, the survey found that one in four people continue to struggle to make ends meet.

This was particularly felt among mature families, while new families and empty nesters had the most positive outlooks.

In terms of spending, the Red C poll of more than 1,000 people found the positive intention to spend was spread right across the population.

However, those between the ages of 18 and 24 and those living in Dublin were found to be the more likely to increase their spending.

The highest intention to spend was for socialising and holidays, but all product categories are likely to increase, the survey found.

More than three in four people now believe that the recovery is under way, with more than three in five of those feeling the benefit on a personal level.

Dubliners continue to feel the benefits most. However, people living in the rest of Leinster and Munster are increasingly feeling the personal benefits of an improving economy

Some 60% of those surveyed said they believe the Irish economy will improve in the next six months —down from 63% in June.

Just over one in 10 expect the economy to be worse in the next six months — an increase of 4% from June.

In terms of the global economy, 36% believe it will improve in the next six months — down from 45% in June.

Some 28% said they expect the world economy to worsen — a jump of 12% since June.

The Syria refugee crisis combined with uncertainty about the Chinese economy has caused a significant decline in the prospects for the world economy.

Although not impacting spend in the short term here, Red C warned this may have a long term effect.

Expectations for the job market are also strong with nearly one in 10 expecting it to be much better in the next six months. Similarly, expectations for the housing market remain high but have compressed slightly since the last Red C consumer monitor in June.

This growth in consumer confidence largely mirrors recent figures from Retail Excellence Ireland which show that the sector experienced its largest growth since 2007.