Irish consumer sentiment hit a 10-year high in November as the economy grows rapidly and unemployment falls, a survey showed on Tuesday, in the latest boost to the government on the eve of a general election. The KBC Bank Ireland/ESRI Consumer Sentiment Index climbed to 103.1 to in November from 101.3 in October, narrowly beating its previous post-crisis high of 102.8 in June.
The jump comes after the government in October announced a fresh round of tax cuts and spending on services and said it expected the economy to grow by over 6 percent this year, outstripping its euro zone peers for a second year. "The 10-year high ... suggests the recovery is strengthening and spreading to the point where most consumers now sense it will make a difference to their financial circumstances," KBC chief economist Austin Hughes said.
"The improvement was led by increasing optimism about jobs as the upswing builds," he said. "Healthier readings in regard to personal finances also suggest that Budget 2016 has had a positive impact on confidence." A key driver of the improvement was the unemployment rate, which fell below 9 percent in October from 15 percent in early 2012 as the country reeled in the wake of a real estate and banking crash.
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