The IIB Bank and ESRI Consumer Sentiment Index fell to 62.3 in February from 64.5 in January; the downward trend showing increased caution on the part of consumers in uncertain times. The corresponding figure for 2002 was 88.0.
The index of current economic conditions declined to 82.1 from 85.1 in January.
The slip in the index shows that Irish consumers have become more worried about the outlook for employment, probably reflecting the nervousness about the possible impact of war in Iraq as well as broader concerns about a sluggish trend in the Irish economy.
Consumers' assessmant of their own financial situations was steady last month and yesterday's ECB rates cut should have a positive influence on sentiment over coming months.
Commenting on the results, the ESRI's David Duffy said: 'The results for February indicate that consumer sentiment weakened following a slight improvement in January. The result for February perticularly reflects consumers' concerns with regard to the current economic situation.'
IIB Bank's Austin Hughes said that he interpreted the figues as showing that the Irish consumer is constrained primarily by a cautious attitude, rather than a lack of cash.
