Bank of Ireland have released their latest Economic Pulse survey which shows that business sentiment is steady and households are more upbeat.
The Bank of Ireland Economic Pulse, which combines the results of the Consumer and Business Pulses, was 101.5 in June, broadly unchanged (+0.2 points) on May, with consumer sentiment up and the business index slightly softer.
The Business Pulse, which surveyed 2,000 businesses, stood at 102.7 in June, down marginally (-0.4 points) on May.
While the Construction Pulse registered a strong pick up (+9.6 points) in June as order book positions improved, the Services (-0.4) and Retail (-3.0) Pulses softened following sharp increases in May, with the Industry Pulse also easing (-0.9).
However, the Services, Retail and Construction Pulses all rose over the first half of the year.
It should be noted that the the surveys were conducted prior to the UK’s EU referendum.
The Consumer Pulse, conducted with 1,000 households, gained ground in June, coming in at 96.8 (+2.5 on May). Households were more upbeat about the outlook for the economy and their personal finances this month, with six in ten expecting the wider economic environment to get better over the next year and around four in ten anticipating an improvement in their own financial situation.
The Housing Pulse also rose in June to 105.9 from 104.0 in May. Seventy seven per cent of Dublin households expect house prices to increase over the next 12 months, with the Rest of Leinster at 71%, Munster at 68% and 56% in Connacht/Ulster.
The share of respondents expecting house prices to increase by more than 5% over the coming year edged a little higher in June, as did the percentage expecting rent increases above the 5% mark.
Unsurprisingly, the greatest expectation of rental increases was in Dublin, with 69% of respondents expecting an increase in rents over the next 12 months, compared with 66% in the Rest of Leinster, 62% in Munster and 52% in Connacht/Ulster.
Group Chief Economist at Bank of Ireland, Dr. Loretta O’Sullivan said, "With households in a more upbeat mood and overall business sentiment little changed, the Economic Pulse recorded another solid reading in June."
She added, "While June saw firms downgrade their assessment of business prospects over the next 3 months, the number expecting an increase in activity continued to far outweigh the number expecting a decrease and the overall Business Pulse remains at a high level."
Source: www.businessworld.ie
