Consumer sentiment weakened last month according to the latest KBC Bank Ireland/ESRI consumer sentiment index, however the decrease was not unexpected after an exceptional rise in October.
The index fell to 60.1 in November from the 16-month high of 63.7 seen the previous month.
This compares to a reading of 48.4 in November 2010 and an average reading of 55.4 for the last 12 months.
KBC says that by combining the results for the past two months, some improvement in the mood of Irish consumers is becoming evident.
However, it added that Irish consumers remain fairly gloomy as they are still ''cash strapped and cautious''.
The Economic and Social Research Institute's Cormac O'Sullivan said that the financial crisis is weighing on consumer sentiment, with the fall this month being driven by households' expectations of future conditions.
''These results suggest Irish consumers may tolerate a Budget package that imposes further pain provided it also points in the direction of an eventual recovery,'' commented KCB Bank Ireland's chief economist Austin Hughes.
