Irish consumer sentiment slips from nine-year high in July

DUBLIN, July 29 (Reuters) - Irish consumer sentiment weakened slightly in July from a nine-year high a month earlier, a survey showed on Wednesday, which the compilers said suggested the feel-good factor was still missing from the country's fast-growing recovery.

The economy grew almost 5 percent last year, the fastest rate in the European Union, and Ireland (Other OTC: IRLD - news) 's central bank increased its growth forecasts for this year and next year on Wednesday, citing further strengthening of domestic demand.

The KBC Bank Ireland/ESRI Consumer Sentiment Index slipped to 99.7 in July from 102.8 in June, however, reversing much of its improvement a month ago.

KBC chief economist Austin Hughes highlighted the lack of change in the underlying trend of the series' three-month moving average and said he did not think the headline reading indicated any marked deterioration in the mood of consumers.

"It points towards an Irish economic recovery constrained by fears and financial pressures that mean a widespread 'feel-good factor' is still absent," Hughes said.

"It reflects a recovery that is still emerging but not yet embedded."

Gross domestic product data for the first quarter will be published on Thursday, with economic indicators suggesting strong growth, with retail sales up and unemployment dipping below 10 percent for the first time in more than six years. (Reporting by Padraic Halpin; Editing by Hugh Lawson)