Bank of Ireland’s latest “Economic Pulse” index, which tracks business and consumer sentiment, fell nearly four points to 84.4 in March but was still tracking up on this time last year when the economy was mired in Covid-related restrictions.
Consumer confidence took a bigger knock as households reacted to the escalation of the Russian-Ukraine conflict and the potential fallout for the economy and inflation. The consumer pulse stood at 56.7 in March 2022. This was 14.5 lower than last month’s reading and 13.1 lower than a year ago.
“Against this backdrop the Consumer Pulse posted its second biggest monthly drop ever , with the business pulse also slipping in March.” “The uncertain geopolitical situation is a headwind for GDP growth and living costs in Ireland. Much will depend on the duration of the conflict and on the actions of policymakers, factors which will also shape sentiment among households and firms in the period ahead,” she said.