A new survey shows that the mood among consumers became more gloomy in December, mainly because of increased worries about the job market.
The monthly consumer sentiment index, compiled by IIB Bank and the ESRI, dropped from 63.1 in November to 62.7, the lowest since July 2003. The index has now fallen in six of the last seven months.
IIB economist Austin Hughes said four out of five people surveyed expected unemployment to rise in 2008, twice as many as a year earlier. He said some high-profile redundancy announcements, as well as fears about job losses in the building industry, mean consumers are worried about job security.
'There is a clear sense of foreboding about what 2008 may hold for the Irish economy,' said Mr Hughes.
A breakdown showed that the index of current economic conditions fell to 82.5 in December from 83.7 in November. The forward-looking index, which measures people's perception of the outlook for the coming months, steadied at 49.3, but this was well below the 87.7 recorded in December 2006.
