Figures released today show that consumer sentiment weakened in February after a sharp rise in January.
The IIB Bank/ESRI consumer sentiment index recorded 99.5, compared with 106.8 in January.
David Duffy of the ESRI said some decline had been expected as consumers were usually more positive about spending during the winter sales in January.
The index of current conditions dropped from 115.5 to 107.5, while the expectations index fell from 100.9 to 94.2. Mr Duffy said consumers had become more cautious about the outlook for the economy and jobs over the next 12 months.
IIB economist Austin Hughes said he still thought the underlying trend was positive, but said consumers had yet to see the improved economic climate translated into higher spending power.
He said sentiment could remain vulnerable to occasional setbacks, perhaps until SSIA accounts began to mature.
