Consumer Positivity is on the rise. The Irish Consumer Sentiment Index reached a 17-month high in August, boosted by summer sales and holiday plans, according to KBC banks most recent Consumer Sentiment Index. This is despite fear of a negative fallout because of Brexit and fear of Donald Trump’s economic policies, which could have a negative effect on American foreign direct investment into Ireland.
The Irish consumer, in the short term at least, appears to have come to terms with the above threats and are responding positively to the very strong performance of the Irish economy. The optimism of the Irish consumer contrasts with two of main trading partners, the US and Britain, who are continuing to witness a drop in consumer positivity.
Consumer positivity, in theory, lead to consumers spending more and has a positive multiplier effect on the local economy, creating more employment because of increased demand for goods and services.
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