Irish consumer sentiment posts first rise in three months

DUBLIN (Reuters) - Irish consumer sentiment ticked up in April but remained well below January's 15-year high, a survey showed on Thursday, as consumers remained cautious in the face of global uncertainty and political deadlock in Dublin.

The KBC Bank Ireland/ESRI Consumer Sentiment Index climbed to 102.7 in April from 100.6 in March. It had stood at 108.6 in January and 105.8 in February.

"The fractional rise in the index in April shouldn't be interpreted as signalling a notable change for the better, but it does suggest that Irish consumers are not gripped by a newly returned pessimism," KBC chief economist Austin Hughes said.

"Instead, the mixed results of recent months suggest many consumers are struggling to make sense of an unclear economic environment."

Hughes said consumers are concerned about the state of the global economy and Britain's June 23 referendum on whether to leave the European Union, a prospect the Irish government has called a "strategic" risk for Ireland.

Britain is Ireland's largest trading partner, with 1.2 billion euros worth of goods and services traded each week.

But comments from the European Central Bank about continued low interest rates have had a positive effect on Irish consumer sentiment, Hughes said.

Ireland has been without a government for more than nine weeks since an inconclusive Feb 26 election, but senior members of Prime Minister Enda Kenny's Fine Gael party have said it may secure backing this week for a minority government.

(Reporting by Conor Humphries; Editing by Gareth Jones)