Economic Pulse shows Irish firms have the summertime jitters

Confidence falls for the second month in a row...

Economic Pulse shows Irish firms have the summertime jitters

Stock picture of euro notes and coins | Image: Niall Carson/PA Archive/PA Images

Uncertainty among Irish businesses over geopolitical shifts forced Bank of Ireland's Economic Pulse down slightly to 91.8 in June. 

Concerns over events such as the "inconclusive outcome" of the UK general election and Brexit negotiations kicking off meant overall economic confidence fell for the second month in a row.

On the business front, falling confidence in services, retail and construction resulted in an overall Pulse reading of 90.7, down 1.4 on May.

Speculation about the future of the help-to-buy scheme for first time buyers – now under review – may be having an impact on construction sentiment, according to Bank of Ireland.

As with May, it was a mixed picture, with consumer confidence actually gaining some ground.

Households were more positive about the economy and their own financial situation, pushing the Consumer Pulse up 2.3 to a 96.4 reading in June.

It was its highest reading since the Brexit vote, with the buying climate also up.

Some 37% of households consider it a good time to purchase big ticket items such as furniture and electrical goods.

On the savings front, two in three indicated that they are likely to put money aside over the next year, with younger cohorts, students and those living with family leading the way.

Bank of Ireland's chief economist Dr Loretta O'Sullivan said:

"A year on from the referendum and the UK’s decision to leave the EU, the Economic Pulse is still off its pre-Brexit levels."