DUBLIN: Companies and households are both feeling less confident about their finances this month than they were in August, the latest monthly Bank of Ireland Economic Pulse survey shows. The comprehensive sentiment index is conducted in conjunction with the European Commission. It found that businesses have downgraded their assessment of near term prospects as worry about lack of progress in Brexit talks between the UK and EU weighed heavily. Meanwhile, consumers had a slightly less rosy outlook on their personal finances after a seasonal bounce last month. Overall, the Bank of Ireland Economic Pulse came in at 88.7 in September, down 3.1 on August and 1.6 lower than this time last year. Within that, the Business Pulse fell for a second month in a row in September to 87.1 as companies downgraded their assessment of the current jobs situation this month. They were also generally more subdued about near-term prospects for business activity and hiring. “The business mood was subdued again this month, with the industry, services, retail and construction pulses all losing ground,” noted Dr. Loretta O’Sullivan, Group Chief Economist, Bank of Ireland. “The UK’s decision to leave the EU continues to be a concern, with the majority of businesses – led by those in Connacht/Ulster – expecting it to have a negative impact on the local economy in their region over the next 12 months,” she added. Meanwhile, the Consumer Pulse lost ground this month, coming in at 95.3. While this was down 3.7 on August’s near-record high, it was up 1.6 on this time last year. Today’s survey showed that households were more muted this month and scaled back their assessment of both the economy and their own financial situation. “Paying bills and the tax burden, along with the cost of renting and rising house prices, topped the list of household concerns this month,” Dr O’Sullivan stated. The survey also includes a Housing Pulse, which showed a reading of 117 in September, up one on last month and 11.9 on a year ago.
Bank of Ireland noted that with demand continuing to outstrip supply, house price and rent expectations were in firm positive territory again this month. While housing infrastructure has an impact on people’s quality of life, it is also relevant for businesses in attracting staff. “However, one in three firms in Connacht/Ulster and almost half in Dublin, the Rest of Leinster and Munster rate the housing infrastructure in their region as inadequate,” Bank of Ireland said.
