DUBLIN: Irish consumer sentiment slipped slightly last month from a seven-year high in July as workers remained uncertain how much an improving Irish economy would help their personal finances.
The KBC Bank Ireland/ESRI Consumer Sentiment Index fell to 87.1 from 89.4 in July when it hit its highest level since Ireland's economy collapsed after the spectacular bursting of a property bubble in 2008.
However the three-month moving average of the series - a measure of the underlying trend - was at its strongest since early 2007 and the August reading of 87.1 compared to the 66.8 recorded a year ago.
"The data suggests that the trend in consumer confidence is still moving in a positive direction but consumers remain unclear as to how much the Irish economy is improving and how any upturn might affect their personal financial circumstances," KBC Ireland chief economist Austin Hughes said.
"It may also suggest that a still patchy upturn in terms of sectors and geography is, unsurprisingly, having an uneven effect on Irish households."
Ireland's government upgraded its growth forecasts last week and now expects the economy to grow by slightly over 3 percent this year compared to an earlier forecast of 2.1 percent following a string of positive economic data.
With unemployment below the euro zone average, consumers beginning to spend again and exports rebounding, the government has also said it will ease up significantly on further austerity measures in next month's budget.
It also wants to offer low and middle-income workers a tax break in October's budget but will have to raise taxes elsewhere in order to fund tax reliefs and make the required adjustment.
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