Irish consumer sentiment as crashed to a near five-year low amid growing fears that Britain will leave the European Union without an agreement. Fears that a no-deal Brexit could prompt an economic slump has made consumers more sensitive in recent weeks, according to the latest KBC Bank of Ireland/ESRI consumer sentiment index.
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Brexit boost: EU will cave to Boriss demands says minister The UK is witnessing a “Boris bounce” as household income, spending and wealth rose at the start of the year.In Ireland, consumer sentiment plummeted to 85.
1 in July from 90.5 previously, according to the index reading.Austin Hughes, an economist at KBC, said Dublin was suffering from a case of the “Boris blues”.He warned that consumers had taken notice of the hardline Brexit stance emerging out of London since Mr Johnson became Prime Minister.
Leo Varadkars Ireland suffers consumer confidence crisis amid looming no-deal Brexit (Image: GETTY)
The consumer sentiment index slump has been branded the Boris blues (Image: GETTY)“In part, it may reflect the fact that Brexit is not of Irish consumers’ making while some of those UK consumers who voted for Brexit may believe it will have a positive economic effects or may feel adverse economic effects may be outweighed by other consequences,” he told the Irish Times.
Mr Hughes said the scale of the recent financial crash in Ireland has left consumers scarred and made them focus on the potential risks of a repeat scenario on their income.“It is noteworthy that a substantial part of that relative improvement in Irish household income has occurred in the period since the UK’s Brexit referendum,” he added.
“However, through this same period, Irish consumers have become increasingly concerned about the risk that Brexit could prompt a renewed and substantial deterioration in their economic circumstances.”MUST READ: Brexit LIVE: ‘Trump was a leaver before there were leavers!’
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