Figures released today show that consumer sentiment fell in August to its lowest level in nearly a year, mainly due to worries about the outlook over the next 12 months.
The IIB/ESRI consumer sentiment index recorded 84.8, down from 90.9 in July. The index which measures consumers' perception of their current financial situation dropped from 105.7 to 99.2, while the expectations index came down to 75.1 from 80.9 in July.
The ESRI's David Duffy said half of Irish consumers surveyed expected the economic outlook to worsen over the next 12 months. IIB economist Austin Hughes said the fall in sentiment was not surprising in the light of increases in interest rates and oil prices in early August. But he pointed out that Irish consumers were slightly more optimistic on job prospects.
The report showed that around half of consumers feel that hikes in energy costs are the main threat to the economic outlook over the next 12 months, with another quarter citing higher interest rates.
