Irish consumer sentiment has fallen again in August as new COVID-19 cases may indicate a new spike in the pandemic. After having risen for three months, the index fell down to 58.9 in August, compared to 62.6 in July. The collapse of the index in April was the worst the country has seen since October 2008.
The drop in August is completely different from the one the country experienced in April, according to the bank.
“There have been some very positive elements in recent spending data that, together with the trend in consumer confidence in recent months, point to a clear turnaround in sentiment and spending from April’s low point,” states Austin Hughes, economist at the KBC Bank of Ireland.
“However, the muted survey results for both July and August suggest that we may be seeing a limited rebound rather than the first signs of a lasting recovery in Irish economic conditions of late.”
The Government has issued a new set of restrictions meant to fight the spread of the virus which effectively reversed some of the reopening phases. People are asked to work from home if possible, as well as avoid public transport at least until September 13.