Consumers to cool off after the heat expenditure to be spent

  • Consumers to cool off after the heat expenditure to be spent
    Independent.t. E.
    The index of consumer sentiment to explode the boil, after the summer heat that saw splurges on booze, ice cream and kebabs.
    https://www.independent.ie/business/irish/consumers-cooling-off-after-heatwave-spending-splurge-37209250.html
    https://www.independent.ie/incoming/article37208960.ece/1905f/AUTOCROP/h342/PL15920271NO%20REPOR%20FEE%20Mr%20.jpg

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The index of consumer sentiment to explode the boil, after the summer heat that saw splurges on booze, ice cream and kebabs.

Two separate reports released this morning show the prolonged warm weather, which lasted until the July growth in consumer prices and retail sales.

The Kbc Bank Ireland/esri consumer sentiment index hit 107.6 in July, compared with 102.1 in June. It was the strongest monthly growth since January, and raised the index to its highest level since March.

But the upsurge in masks significant uncertainty as a result of a British exit from the EU – just seven months – and global trade tensions, leaving consumers cautious about their future spending.

Latest IBEC Retail Ireland monitor report released this morning shows that retail sales in the second quarter of this year jumped 3.4 PC.

“From the prolonged cold and heavy snow of March, the drought in June, the weather has a huge impact on Irish retail in the first half of this year,” said Director of retail Ireland Thomas Burke.

He added: “with the recent fine spell of weather, our members have reported increased demand for seasonal products, such fans, ice cream, barbecue and garden furniture, and much more. This surge in demand has pushed supply chains of retailers to the limit, especially in June.”

But until this morning, KBC/esri report acknowledges the increase in retail sales due to good weather, is not optimistic that good mood can continue until the end of autumn.

“While July is a reflection of the overall positive Outlook from the Irish consumer, we would like to stress that this reflects considerable care and a special sensitivity to bad news in what remains an uncertain economic environment,” the report says.

He announced a sharp increase in the procurement plans of Irish consumers in July suggested in his report reflected the increased sale compared with June associated with summer sales, ‘182’ registration marks of vehicles coming on stream, and a summer vacation at a ski resort.

“The jump in Irish consumer sentiment in July was at odds with weaker evidence similar indicators for the US and the UK,” said chief economist IR Ireland Austin Hughes.

“While the study of attitudes due to the economic temperature, we believe that exceptionally warm weather can cause more Irish consumers to see that the glass is half full, not half empty in July,” he added.

“Unfortunately, this indicates a steeper term sentiment and spending in the coming months.”

He added: “we believe that many consumers are struggling to reconcile the reports of the favorable conditions prevailing in the labour market with the reality of modest to pay the profits and the existing threats for the security of the work.”

KBC/esri report found that 29pc of consumers felt in July that their situation had improved, while 18pc thought it went downhill. It was the most positive reading since February. But the report States that recent data continues to suggest a “modest and uneven improvements” in household finances across the Irish economy as a whole.

A report by retail Ireland also found that the increase in retail sales in the second quarter of the year was broad based.

“While many categories were increased by prolonged drought, other sectors such as Department stores, clothing and footwear, and hairdressing reported lower than normal attendance and a decrease in sales in the period,” said Mr. Burke.

“The consistently cold weather in April and may weighed on the summer sales of women’s clothing, while record high temperatures in the end of the quarter negatively impacted attendance,” he said.

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