AIB Amarach Recovery Indicator August 2010

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The latest findings from our monthly tracker of Irish consumer expectations about economic recovery.

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AIB Amarach Recovery Indicator August 2010

  1. 1. The Economic Recovery Index An Amárach Research Briefing October Index Results The AIB Amárach Recovery Indicator August 2010 Results © Amárach Research 2009
  2. 2. 2 Timing Recovery Business Cycle Peaks & Troughs • All recessions end in recovery – so will this one • The biggest forecasting challenge is timing: when do we know the recession is over and recovery has started? • Amárach Research has developed the Recovery Indicator to help us track the economic cycle more closely • This report summarises the Recovery Indicator results for April 2009 (when it began) to August 2010 • The fieldwork was conducted on 11th to 20th August 2010
  3. 3. 3 A Matter of Measurement • Every month we survey a representative sample of 1,000 adults – split 850 online and 150 face-to-face to ensure coverage of the total population – and ask them to tell us which statement ‘best describes the economic situation in Ireland right now’ • Each statement corresponds to a different stage in the economic cycle
  4. 4. 4 A Matter of Measurement • The general sense in August ‘10 is marginally less positive than July. Although the trend versus April 2009 is one of improvement, August sees a more concerned response than that of July. April’09 0% August’10 * April’09 1% August’10 4% April’09 77% August‘10 36% April’09 8% August’10 24% April’09 14% August’10 36%
  5. 5. 5 AIB-Amárach Recovery Indicator • Using the answers to the survey we have created the Recovery Indicator, which ranges from 0 to 100 (0 = worsening recession; 100 = back to peak). • Summer positivity of June and July declines at the start of Autumn. 30 27.1 25.3 26 25 23.8 24 23.8 22.723.5 20 19.6 17.8 18.4 17.8 18.3 16.3 17 15 15 10 8.3 5 0 Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug '09 '10 '10
  6. 6. 6 Recovery Outlook 1 Ireland will be through the worst of the recession in 12 months time: % agree strongly/slightly 52% 48% 41% 43% 42% 41% 44% 42% 43% 46% 41% 42% 43% 42% 42% 39% 34% Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug '09 '10 I am optimistic in spite of the current economic situation: % agree strongly/slightly 61% 54% 55% 57% 59% 65%58% 60% 62% 55% 51% 51% 55% 54% 52% 53% 50% Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug '09 '10
  7. 7. 7 Recovery Outlook 2 I feel I am financially comfortable enough to make it through the recession: % agree strongly/slightly 45% 45% 50% 47% 48% 48% 51% 47% 48% 48% 46% 47% 43% 47% 45% 45% 46% Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug '09 '10 Right now it seems like the recession is affecting other people more than it is affecting me: % agree strongly/slightly 56% 55%53% 55% 59% 62% 61%60% 61% 60% 56% 55% 52% 53% 51% 50% 54% Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug '09 '10
  8. 8. 8 Financial Sentiment Indicators from the ARI Survey Percent of adults who agree with each statement: October 2009 and October 2010 (unless otherwise stated) I am more relaxed about I am saving a lot more spending money than I than before because of Impact on: was a few months ago the recession •Spending •Saving 33% 26% •Debt 16% 19% •Borrowing Aug '09 Aug '10 Aug '09 Aug'10 # Paying off debts is my # Now is a good time to main financial priority # I would be happy to buy a house* for those borrow from a bank if I who want to 61% 62% need to 62% 62% 33% 31% Oct'09 Aug'10 Oct '09 Aug'10 Oct '09 Aug'10 * ‘a new house’ in 2009 # Question first asked in October 2009
  9. 9. 9 The Mood of the Nation 1 Did you experience any of these feelings a lot of the day yesterday? April 2009 to August 2010 70% 60% 50% 40% 30% 20% Enjoyment Happiness Stress Worry 10% 0% Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug '09 '10 '10
  10. 10. 10 The Mood of the Nation 2 Did you experience any of these feelings a lot of the day yesterday? April 2009 to August 2010 35% 30% 25% 20% 15% 10% Anxiety Sadness Pain Anger 5% 0% Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug '09 '10 '10
  11. 11. 11 Your Household Income is... More than sufficient to meet household expenses Simply not sufficient to at the moment meet household expenses at the moment Just about sufficient to meet household expenses at the moment
  12. 12. 12 Goods or Services Would Start Spending More Money on First assuming recovery in the economy in the next twelve months and greater job security
  13. 13. 13 AIB Contact Details Amárach Contact Details Ronan Sheridan Gerard O’Neill - Chairman Group Press Officer Amárach Research AIB 11 Kingswood Business Centre Bankcentre Citywest Business Campus Ballsbridge Dublin 24 Dublin 4 T. (01) 410 5200 T. (01) 641 4651 E. gerard.oneill@amarach.com M. 086 388 0898 W. www.amarach.com B. amarachresearch.blogspot.com

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