Confidence hits ‘all-time low’

WORRIES about inflation and energy supplies have sent consumer sentiment plummeting to an ‘all-time low’.

Bank of Ireland’s Consumer Pulse index is down to 70.6 from last year’s figure of 98.2 as households struggle to make ends meet.

Several providers have announced more gas and electricity price increases, while anxieties over bills continue to plague households, according to Bank of Ireland (BoI).

With energy bills and mortgage payments on the rise, households are concerned about their personal finances – with one in three just managing to make ends meet, according to BoI’s survey.

BoI chief economist Dr Loretta O’Sullivan said: ‘Economic sentiment was down this month amid an intensification of energy woes. With households facing the prospect of even higher gas and electricity bills over the coming months, consumer confidence sank to an all-time low in September.

The Housing Pulse came in at 99.8 in September, down 1.6 on last month and 19.1 lower than a year ago. With the demand for housing continuing to outstrip supply, 65% think house prices will increase over the coming year, compared to 68% in August.

Business confidence has also been hit by uncertainty. The Business Pulse stood at 77.7 this month, down by 0.7 on August and 12.3 lower than a year ago. Two thirds of firms said it is difficult to predict the future development of their business situation at present.

September’s research also looked at infrastructure priorities from a business perspective, finding that housing remains in pole position. Forty-two per cent of firms cited it as the key area for investment.

‘The unsettled environment tempered business sentiment, while concerns about the ability of Ireland to keep the lights on this winter have prompted some reassignment of infrastructure needs,’ said Ms O’Sullivan.