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Summary
- Consumer sentiments rose for the second month in a row in Ireland amid falling Covid-19 cases and the onset of the festive season.
- The KBC Bank consumer sentiment index jumped sharply to 74.5 in December compared to 65.5 in November.
- Ireland currently has the lowest incidence of coronavirus infections in the EU as it had taken swift action in implementing temporary shutdowns
Consumer sentiment in Ireland has bounced back strongly in December as the second lockdown in the country was withdrawn at the beginning of the month. KBC Bank, which maintains a consumer sentiment index for Ireland, has reported a value of 74.6 for the month of December compared to 65.5 reported in November. The value had dropped sharply to 42.6 in April after the country was hit by the virus.
Backed by the lowest reporting of new COVID- 19 infection incidents within the European Union, the economy of the country is set to witness a big boom as the festive season peaks in the next fortnight. The KBC Bank Ireland plc provides a wide range of banking services and has offices across Belfast, Cork, Dublin, Galway, and Limerick.
The consumer confidence for December, however, was lower than the consumer confidence reported in December 2019, which stood at 81.4.
(Image source: ©Kalkine Group 2020)
Second Lockdown in Ireland
The second lockdown was imposed in Ireland on 21 October for a period of six weeks much before any other European country had declared. This is considered as a farsighted move as the infection rates were beginning to spike and would have gone out of control. Subsequently, it would have affected business activities and consumer sentiment levels.
Housing demand
The KBC Bank survey made a reference on how housing demand in the last couple months has impacted the consumer sentiments.
Around 21 per cent of the respondents have said that the pandemic had increased the importance of living space and facilities for them, while 14 per cent of consumers have negated this notion.
About 18 per cent of the respondents in the survey said that the pandemic has made them willing to spend more on their accommodation. About 22 per cent of the respondents said that the pandemic had increased their interest in buying or moving houses.
The pandemic has increased the willingness of nearly 16 per cent of Irish consumers to live further from their places of work.
Of the total people surveyed, 18 per cent said that the pandemic has forced them to use a higher proportion of their savings to purchase a house. On the other hand, 21 per cent of respondents said it decreased their capacity to save for themselves.
About 27 per cent of consumers said that the pandemic has pushed the prices for all sorts of property, where only 15 per cent think prices had eased out for the same.
Cases in Ireland
Northern Ireland’s health services are reportedly under severe pressure as the hospitals are overflowing with patients with sudden spike in cases. Eight deaths and 329 new cases were reported by the National Public Health Emergency Team (Nphet).
A two-week circuit-breaker lockdown ended on Friday. Between 22 December and 28 December, people will be allowed to travel anywhere in the UK. Up to three households can form a “bubble” to celebrate Christmas from 23 December to 27 December.
