Irish consumer sentiment hit a new 10-year high in December, with employment growth, increased household spending capacity and the prospect of tax cuts lifting confidence, a survey showed on Tuesday. The KBC Bank Ireland/ESRI Consumer Sentiment Index climbed to 103.9 in December from its previous 10-year high of 103.1 in November, its highest level since January 2006.
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 around 7 percent this year, outstripping its euro zone peers for a second successive year. "The prospect of budget measures feeding into stronger incomes, combined with lower oil prices and aggressive price discounting by retailers have made Irish consumers more confident about their spending power than at any other time in recent years," KBC chief economist Austin Hughes said.