New figures show a jump in consumer sentiment.

The regular index from KBC Bank and the Economic and Social Research Institute (ESRI) shows it rose from 60.9 in October to 63.8 in November.

The modest improvement in sentiment may hint that consumers think they are prepared for Budget 2013 but the report warns that confidence is still fragile. 

Better sentiment here also mirrors that in the US and UK but is seen as at odds with the gloomier Eurozone figures.

A modest increase in the comparable US confidence measure was prepared by the University of Michigan and was enough to raise consumer sentiment in the States to its strongest level since September 2007.

Similarly UK consumers recorded their strongest confidence reading in 18 months.

While in contrast the Euroarea consumer confidence posted the 6th monthly decline in a row to take this measure to its lowest level since May 2009. 

Modest growth for 2013

Experts says the small Irish improvement in the economic outlook suggests consumers do expect modest growth next year.

The latest outlook says the most surprising element of the November survey results was an improvement in consumers’ assessment of their personal finances.

In the 2 previous months it says this element deteriorated significantly.

The November survey shows a partial correction of that decline and says this may reflect a view that consumers feel fears about Budget 2013 may be overdone. 

Austin Hughes is Chief Economist at KBC Bank.

He thinks there are 2 reasons why consumers were slightly less gloomy about the economy last month.