A new survey has shown that the mood among consumers was the gloomiest for four years in July, mainly because of concern about a weakening property market and a broader economic slowdown.
The consumer sentiment index, compiled by the ESRI and IIB Bank, was 74.7 in July, down from 83.2 in June and the lowest since October 2003.
IIB economist Austin Hughes said the results suggested that a spate of gloomy forecasts for the property market and the broader Irish economy had made people much more nervous about the outlook for jobs and economic activity.
Both parts of the index fell. The index which measures how people feel about current economic conditions declined from 96.6 to 90.8, while the forward-looking index, which focuses on outlook for the coming months, fell to 63.9 from 74.1 in June.
A breakdown of the figures showed that 68% of those surveyed expected unemployment to increase over the next 12 months. 52% take a negative view of the Irish economic outlook, against 14% who are positive. This is the most negative picture since September 2005.
But Mr Hughes pointed out that consumers reported a marginal improvement in the outlook for their own household finances in the next 12 months, so the overall figure did not signal a slump.
