Initial results from a survey by the IIB Bank and the ERSI indicate that consumer confidence fell in December.
According to figures released this afternoon the overall IIB Bank/ESRI Consumer Sentiment Index was 63.8 in December. This compares to a figure of 66.5 in November.
Commenting on the results, Mr David Duffy of the ESRI, said results reflect a deterioration in consumers perception of the current economic situation.
"The index of current economic conditions declined to 81.7 from 87.5 in November," Mr Duffy said.
"This was mainly due to continued concerns about the households current and future financial situation."
In addition, the forward-looking sub-index, the expectations index, slipped to 51.7 from 52.3 in November.
The moderate decline in the expectations index is due to a decline in households expectation of their future financial situation, he added.
The fact that the drop in December principally reflects growing concern in regard to households own financial situation suggests that poorer economic conditions worldwide and changed budgetary circumstances in Ireland have really begun to squeeze purchasing power, according to Mr Austin Hughes of IIB Bank.
"Clearly, these factors more than outweighed the benefit of December's ECB interest rate cut," he said.
"The drop in consumer sentiment in Ireland in December was at odds with stable sentiment in France and a rise in sentiment in the US.
" . . .Irish consumers feel that the squeeze on spending power that they experienced in 2002 will continue in the coming year. That said, the drop in sentiment remains 'orderly'".