A survey which measures how consumers feel about the economy fell for the second month in a row in August.
The consumer sentiment index, compiled by KBC Bank and the ESRI, recorded 61.4, down from 66.2 in July. The index had hit its highest level since 2007 in June.
The ESRI's David Duffy said the main reason for the fall was more caution about spending among consumers.
The current conditions index - which includes questions about how likely people are to spend - fell to 75.3 from 85.7 in July. The expectations index dropped from 53.1 in July to 52.1, as consumers were more negative about the outlook for the economy.
KBC economist Austin Hughes said the survey indicated renewed nervousness among Irish consumers, and contrasted with a brighter mood among those in many other countries. He said the fall may reflect increased nervousness about the outlook for the banks and the public finances.
