A survey has shown that consumers became more gloomy about the economic outlook in June, after a pick-up in sentiment the previous month.
The consumer sentiment index, measured by the ESRI and IIB Bank, recorded 83.2, down from 85.7 in May.
IIB Bank economist Austin Hughes said a spate of lay-off announcements, worries about inflation and higher interest rates combined to weaken the figure. He said recent figures, compared with those for other countries, suggested that Irish consumers were 'extremely cautious'.
The economist also suggested that the SSIA factor may be fading, as the money has already been spent or committed to savings.
A breakdown showed that the index for current economic conditions declined from 97.7 to 96.6, while the expectations index - which measures consumers' feelings about the months ahead - fell more sharply from 77.7 to 74.1. But the ESRI's David Duffy said the average for the last three months suggested consumer sentiment was 'broadly stable'.
