Bank of Ireland has released its latest Economic Pulse today which is 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 Pulse came in at 92.8 in January 2018. The index, which combines the results of the Consumer and Business Pulses, was up 3.9 on December but broadly unchanged on last January. A general improvement in sentiment took the Consumer Pulse to a two year high this month. Households also tend to be more upbeat about the buying climate when the post-Christmas sales are underway and this was the case again this year.
On the business side, the Industry, Services and Construction Pulses were up on the month though the Retail Pulse was a bit softer.
The Consumer Pulse gained ground in January 2018, coming in at 100. This was up 5.3 on last month’s reading and 5.6 on a year ago. Households upgraded their assessment of the economy this month and, to a lesser extent, their own financial situation. With the post-Christmas sales underway, they were also more upbeat about the buying climate (41% considered it the right time to make major purchases like furniture and electrical goods compared with 34% in December) and one in four (27%) is likely to buy a car in the next 12 months.
The Business Pulse stood at 91.0 in January 2018, up 3.5 on last month but down 1.8 on a year ago. Firms in all sectors upgraded their near-term expectations for business activity this month, with those in industry, services and construction also more positive about employment prospects. The January data show that 44% of businesses are planning on increasing basic wages over the coming 12 months – this is up from 37% this time last year and reflects the tightening of the labour market in the intervening period as well as the higher national minimum wage that came into effect at the start of 2018 - while 48% of workers are expecting a pay rise.
Discussing the Economic Pulse, Group Chief Economist at Bank of Ireland, Dr. Loretta O’Sullivan said, "The mood music was positive this month, with data published by the CSO and the Department of Finance in recent weeks showing that the economy is doing well and that the public finances remain on track. January also saw the changes to social welfare payments and income taxes announced in Budget 2018 come into effect and while Brexit worries haven’t gone away, they took more of a back seat this month as attention turned to a possible transition period. As a result, the Economic Pulse started the new year on a positive note, with consumer confidence posting a two year high and business sentiment up on December’s reading."
Source: www.businessworld.ie
