CONSUMERS are planning a spending splurge this Christmas, according to the latest report from Danske Bank.
It is reporting a bounce back in confidence among Northern Ireland consumers in the third quarter.
The Danske Bank Consumer Confidence report saw rising sentiment levels bringing the index to the highest since the its survey began in 2008.
The index rose 14 points over the quarter, bringing it to 142. On an annual comparison the index was 12 points higher relative to the same quarter last year.
A record low of 20 per cent of consumers said they were planning to spend less in the months ahead, - compared to 48 per cent with similar sentiments in 2011.
And while the majority of consumers expected their financial position to remain the same (66 per cent), there was a small rise in the percentage of people expecting their finances to improve, with the proportion of positive responses rising from 14 per cent to 18 per cent.
Around two-thirds of households surveyed believed their current financial position is relatively unchanged when compared to one year ago.
However, the latest survey also found a small increase in the proportion of consumers who believed that things have improved over the last 12 months.
Confidence around job security also rose during the three months. The majority of people (74 per cent) believed their job security would be unchanged in the next year while there was a small improvement in the proportion believing it would actually improve.
Danske Bank’s chief economist in the north Angela McGowan said consumer confidence levels were "much higher than expected".
"Given the second quarter dip in local confidence levels following the UK general election and the problems associated with the local Executive, it is great to see this latest rebound," she said.
"That temporary dip in sentiment in the April-June period was also observed at the UK level, and in a similar fashion confidence levels across the UK have also picked up since. Low inflation and rising real wages are undoubtedly part of this positive story.
"However, a note of caution must be sounded in terms of how long low inflation will persist.”
She said there was good news for the retail sector ahead of the busy fourth quarter.
"Retailers will be delighted to see that in the run up to the Christmas season, low inflation and rising real wages are providing consumers with the confidence to spend more," she said.
"The falling price of fuel, energy and food and drink has resulted in consumers enjoying a greater level of discretionary income in recent months.
"However, it should be noted that while confidence around spending is rising overall, working households and particularly those in full-time jobs are significantly more optimistic than benefit-dependent households.”
