Irish client sentiment falls again as Brexit worries weigh

DUBLIN (Reuters) – Irish client sentiment slipped in August as worries about Brexit grew, a survey confirmed on Thursday, erasing a July bounce put all the way down to unusually heat climate and the beginning of the summer time holidays.

FILE PHOTO: A person fishes within the rain on a river in Ballyforan, Ireland, August 26, 2018. REUTERS/Dylan Martinez

Ireland’s financial system is on the right track to be the most effective performer within the European Union for the fifth consecutive 12 months, however there’s rising concern in regards to the vulnerability of the financial system to an unruly British exit from the bloc.

The KBC Bank Ireland/ESRI Consumer Sentiment Index fell to 102.four in August from 107.6 in July, leaving it broadly according to the June stage of 102.1.

The fall in Irish client sentiment coincided with weak spot in comparable indicators for the United States and the euro zone, and client expectations could possibly be additional dampened by global dangers, Philip Economides of the ESRI stated.

“August was mired in such events, including the commencement of a U.S.-China trade war, the rising concerns of emerging market contagion risks for European banks and the lethargy exhibited within Brexit negotiations,” Economides stated.

The sentiment index has not moved in the identical path in successive months since final November, reflecting substantial uncertainty, the survey’s authors stated.

“The pull-back in August is partly a reaction to the end of summer sales and the onset of various financial commitments ranging from back-to-school spending to higher autumn energy bills,” KBC Ireland Chief Economist Austin Hughes stated.

“Irish consumer sentiment is on a modestly positive trend but the average consumer is seeing modest and quite uneven gains in spending power and many feel some distance removed from strong macro data.”

Reporting by Graham Fahy; modifying by Andrew Roche

Our Standards:The Thomson Reuters Trust Principles.

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