Consumers across Ireland have turned more confident about economic conditions over rising hopes that the coronavirus crisis would soon come under control and restrictions start easing over the coming months. KBC Bank’s consumer sentiment index registered a sharp increase to 77.1 during March from 70.8 in the previous month, significantly above the low of 42.6 in April 2020 following the announcement of the first round of lockdowns.

Consumers have turned more optimistic about the Irish economy’s capability to overcome the impact of the pandemic However, they still remain cautious about their personal finances and spending plans, which reveal that uncertainties about the economic outlook still weigh on consumers’ minds.

Around 25% of consumers surveyed expect Ireland’s economy to grow over the coming year, while around 12.5% anticipate further contraction instead. However, more consumers expressed pessimism about the state of their household finances over the next 12 months, indicating a weaker outlook on spending.

What is encouraging, however, is that around 23% of consumers have plans to indulge in record levels of spending from the money saved up over the past year. 9% of consumers have made plans to invest in major projects such as purchase or renovation of homes while 22% are planning to set aside their savings for possible upcoming emergencies.