‘Consumers feeling strengths as well as strains’
The pressures facing Irish consumers are fading but are far from finished, according to the Credit Union Consumer Sentiment Index, which showed the mood among consumers improved fractionally in July. Economist Austin Hughes said holidays and summer sales likely encouraged a pick-up in spending plans. However, a slight pull-back in household financial circumstances suggests consumers […]
Oil edges higher, buoyed by tighter supplies
Oil prices rose today, buoyed by evidence of tightening supplies and economic stimulus in slow-recovering China. Brent futures were up $1.02 at $80.66 a barrel by 1134 GMT, while US West Texas Intermediate (WTI) crude climbed $1 to $76.65 a barrel. “The supply deficit that had been looming in the second half of the year […]
ECB to raise rates by 25 basis points in July, slim majority say September too
The European Central Bank will raise interest rates by 25 basis points on July 27, according to all economists in a Reuters poll, a slight majority of whom were now also expecting another hike in September. Inflation in the euro zone has almost halved, down to 5.5% in June from a peak of 10.6% last […]
New home construction starts down 16% in June
The number of new homes that building work commenced on in June was down 16% on the previous month. However, compared to June of last year, the number of commencement notices lodged for residential properties was up 25%. In June work began on a total of 2,574 new homes around the country, down from 3,059 […]
‘Embarrassment of riches’ should be spent on capital infrastructure – Goodbody
The chief economist at stockbroker Goodbody said he supports a proposed new capital spending stabilisation fund for the country’s “embarrassment of riches”. “The public finances have been the story of 2023 for the Irish economy,” Dermot O’Leary said. While he acknowledged that a sovereign wealth fund for corporation tax revenue is a good idea, he […]
June sunshine boosted spending in pubs and restaurants
The June sunshine boosted spending in pubs by 28% compared to the previous month, new figures from AIB show. Spending in hotels jumped by 12%, while restaurant spend increased by 7%. The data shows that spending in pubs and restaurants peaked on 24 June, the day of Dublin Pride. “This information is vital for businesses, […]
ECB to raise rates by 25 basis points in July, slim majority say September too
The European Central Bank will raise interest rates by 25 basis points on July 27, according to all economists in a Reuters poll, a slight majority of whom were now also expecting another hike in September. Inflation in the euro zone has almost halved, down to 5.5% in June from a peak of 10.6% last […]
Ireland’s home ownership age gap among the highest in Western Europe – ESRI
Ireland has one of the biggest gaps in home ownership between younger and older people in western Europe, a new study has found. The research by the Economic and Social Research Institute found that nearly 80% of people over the age of 40 in Ireland own their own home, but that just a third of […]
Warning of businesses going bust if VAT goes back to 13.5%
Hairdressers and restaurant owners have warned that if the reduced 9% VAT rate increases back to 13.5% again as planned at the end of August, it will put some out of businesses. In February the Government extended the 9% VAT rate further until September 1 as part of measures to assist those in the tourism, […]
Refundable tax credits could cost €1bn Tax Strategy Group report claims
The Tax Strategy Group paper on income tax has examined the issue of refundable tax credits. This is when those on low incomes do not earn enough to use up all of their available tax credits. A change would allow these taxpayers to receive the value of the unused credits. The Tax Strategy Group is […]
Paper explores cost of hiking social welfare payments in budget
A €1 increase in the personal rates of all weekly paid social welfare schemes in October’s budget would cost €69.4 million, according to new estimates. If an additional €1 was also to be paid to dependent adults and children, it would cost €89.4 million. While a €1 increase in the personal rates of all weekly […]
Job vacancies fall by 25% compared to last year – report
Job vacancies fell by 25% in the second quarter of the year, on an annual basis, according to the latest Jobs Index from hiring platform IrishJobs. The report finds that the fall is linked to the post-Covid hiring surge that occurred in 2022. On a quarterly basis job vacancies fell by 4% and are now […]
Petrol and diesel prices remain steady in July – AA
Fuel prices remained stable in July and are virtually unchanged compared to June, the latest AA fuel prices survey shows. The average petrol price is €1.65 in July, the same as in June, with the average price for diesel rising by a marginal two cents to hit €1.55. “Following the duty increases last month, we […]
Exports slow by €1.2 billion in May – CSO
New figures from the Central Statistics Office show that Irish unadjusted exports of goods decreased by €1.2 billion to €16.7 billion in May compared to the same time last year. When seasonally adjusted, exports of goods fell by more than €400m in May from the previous month. Exports of medical and pharmaceutical products decreased by […]
Exports to boost Irish economic growth – Accenture
A new survey published today shows that despite the global economic challenges, Ireland’s growth forecast has emerged strongly. The latest Accenture/S&P Global Ireland Business Outlook survey show a sustained sense of optimism among Irish private sector companies, buoyed by expected improvements in export performance. The survey reveals that receding energy and raw material price pressures […]
Irish GDP slowed by 2.8% in Q1, revised CSO figures show
The Irish economy, as measured by Gross Domestic Product (GDP), contracted by 2.8% in the first three months of the year, updated data from the Central Statistics Office has found. Last month, early data from the CSO suggested that GDP between January and March had fallen by 4.6%. That, coupled with a downward revision to […]
Interest rates and inflation – the search for the ‘sweet spot’
On paper, the job of a Central Bank Governing Council sounds fairly straight forward. Maintain price stability and ensure the stability of the financial system. The guiding principle for the first is to keep the annual rate of consumer price increases to around 2%. Sounds achievable, but that is much easier said than done, as […]
Infrastructure deficit is leading to lost opportunities, Ibec warns
Ibec has warned that Ireland is currently losing out on business opportunities because of constraints in capacity in the economy, including around housing. The employers’ organisation claims the Government must focus on creating greater economic capacity in October’s budget, through both expanding infrastructure and boosting social investment. Launching Ibec’s pre-budget submission, Executive Director of Lobbying […]