Irish consumer sentiment drops on tighter virus restrictions

August had seen Ireland’s consumer sentiment declining. This followed after the implementation of local virus-related lockdowns and tighter nationwide measures, prompting people to reassess how long the coronavirus-led disruption will persist.

The KBC Bank consumer sentiment index was monitored at 58.9 this month, placing lower than the 62.6 reading seen in July. However, the figure placed above the 42.6 record in April when activity slumped and resulted to the sharpest monthly drop on record.

“There have been some very positive elements in recent spending data that, together with the trend in consumer confidence in recent months, point to a clear turnaround in sentiment and spending from April’s low-point,” KBC Ireland chief economist Austin Hughes said.

The country was put under one of the strictest virus-driven approaches in Europe, with its economy slowly reopening and restrictions failing to contain an upsurge in new infections this month.