The latest Economic Pulse from Bank of Ireland came in at 88.7 in September 2017. The index, which combines the results of the Consumer and Business Pulses, was down 3.1 on August and was 1.6 lower than this time last year.
The Bank of Ireland Economic Pulse survey is conducted in conjunction with the European Commission, with the data feeding into the EU Commission’s Joint Harmonised EU Programme of Business and Consumer Surveys, a Europe-wide sentiment study running since the 1960s.
The Economic Pulse surveys are conducted by Ipsos MRBI on behalf of Bank of Ireland with 1,000 households and over 2,000 businesses on a range of topics including the economy, their financial situation, spending plans, house price expectations and business activity.
The Business Pulse fell for a second month running in September 2017 to 87.1, with sentiment down in the four sectors. Firms downgraded their assessment of the current jobs situation this month, and were generally more subdued about near-term prospects for business activity and / or hiring.
In terms of the broader operating environment, the September results point to a broad level of satisfaction among firms with basic infrastructure such as water, waste and energy; whereas transport, telecommunications and housing infrastructure falls somewhat short.
The Consumer Pulse lost ground in September 2017, coming in at 95.3. While this was down 3.7 on August’s near-record high, it was up 1.6 on this time last year. Households were more muted this month and scaled back their assessment of both the economy and their own financial situation. Buying sentiment was also softer following a seasonal bounce in August, with 36% considering it a good time to purchase big ticket items such as furniture and electrical goods (40% last month).
Meanwhile, the Housing Pulse stood at 117.0 in September 2017, up 1.0 on last month and 11.9 on a year ago. With demand continuing to outstrip supply, house price and rent expectations were in firm positive territory again this month.
While housing infrastructure has an impact on people’s quality of life, it is also relevant for businesses in attracting staff. However, one in three firms in Connacht/Ulster and almost half in Dublin, the Rest of Leinster and Munster rate the housing infrastructure in their region as inadequate.
Discussing the Economic Pulse, Group Chief Economist at Bank of Ireland, Dr. Loretta O’Sullivan said, "The rebound in consumer confidence lost some steam this month, and with business sentiment also subdued, the Economic Pulse posted its lowest reading of the year to date. This month’s reading was also the weakest since last November when the outcome of the US election, coming on top of the Brexit-vote, rattled households and firms."
She added, "Some nervousness in the run up to the Budget may have been at play this month, while things are still up in the air with Brexit. We will have to wait and see what measures the government rolls out on Budget day. In the meantime, the solid economic and labour market performance in the second quarter is encouraging."
Source: www.businessworld.ie
