Consumer sentiment was broadly unchanged this month despite the recent ECB rate cut, suggesting consumers remain cautious.

The KBC Bank Ireland/ESRI Consumer Sentiment Index for May edged up to 61.2 from its April reading of 58.9.

The three-month moving average increased marginally from 60.0 from 59.4 the previous month.

“The index has changed little in the past three months as consumers await decisive evidence indicators as to whether recovery is taking hold or greater difficulties might lie ahead,” KBC said.

“Although consumers appear to have some sense that the broad Irish economy may be improving, the extent of any upswing is altogether too limited to ease continuing concerns about their personal finances.”

KBC also noted that the current Irish reading contrasted with the “feel-good” factor emerging among US and German consumers.

The survey samples consumer five areas in order to compile the index.

The most positive element of the May survey was in relation to the outlook for household finances.

The survey results showed show that only 10 per cent of those surveyed see an improvement in their personal financial situation in the coming year compared to 56 per cent who see a further weakening, a marginal improvement on the 7:60 split recorded in April.

“We should emphasise that a limited improvement in May doesn’t alter the general picture of an Irish consumer who remains worried about a continuing deterioration in their financial situation,” KBC said.