Confidence among Irish consumers has fallen to its lowest level since 1996 and points to a a sluggish Christmas shopping season, a survey published today says.
The IIB Bank/ESRI Consumer Sentiment Index was 70.3 in September. This compares to a figure of 73.3 in August.
The index of current economic conditions fell to 86.9 in September from 93.3 in August. The expectations index fell marginally to 59.1 in September from 59.8 in August.
According to Mr Austin Hughes of IIB Bank, the weakening in the current conditions component suggests poorer economic conditions at home and abroad have begun to hit the purchasing power of Irish consumers.
He said that weaker income growth and stubborn inflation were probably the key drivers of this deterioration. The details of the data show a marked worsening of consumer attitudes towards making major purchases.
"A more cautious attitude isn't surprising but it does hint at sluggish pre-Christmas spending that will make it difficult for the economy as a whole to show much improvement between now and end year," he said.