Consumer confidence up ahead of Christmas cost increases 

“The prevailing mood of Irish consumers is one of continuing caution,” said economist Austin Hughes in his analysis of the survey.

The survey showed confidence increased to 61.9 from 60.4 in October. The past two months have seen marginal increases that followed successive declines in August and September. Mr Hughes said: 

It is not immediately obvious why the economic concerns of Irish consumers should have eased in November. 

Corporation tax receipts in recent months have weakened while annual grocery price inflation fell below 10%, but remains nearly double the overall consumer price inflation, figures from Kantar showed.

“However, it should be emphasised that despite the improvement in this month’s survey, these results still suggest Irish consumers expect economic growth will slow and the jobs market will soften in the next 12 months,” said Mr Hughes.

Spending power among households for the coming weeks will vary significantly due the impact of higher household bills. Respondents under 35 were more notably likely to say they have more to spend this Christmas than those aged over 35.

Overall, consumer confidence in their household finances has weakened marginally in the past 12 months weakened, driven by climbing living costs despite cooling inflation.

In contrast, respondents were a little more positive in relation to the outlook for household finances over the next 12 months.

This could reflect the further easing in energy costs and, in particular, a high-profile round of upcoming price cuts from electricity and gas providers, according to the survey.

Around 275,000 domestic customers were in arrears on their electricity bills in the third quarter, according to the energy regulator.