A survey has indicated that the mood among Irish consumers fell to its gloomiest in almost four years in August.
The consumer sentiment index, compiled by the ESRI and IIB Bank, fell from 74.7 in July to 72, the lowest since October 2003.
Increased fears about jobs were the main reason for the drop, with three out of four of those surveyed expecting unemployment to rise in the next 12 months. This was the most negative figure on jobs since September 2003.
A breakdown showed that the index of current conditions rose slightly from 90.8 to 92.4. But the forward-looking index, which measures how people feel about the coming months, dropped from 63.9 to 58.2.
IIB economist Austin Hughes said that although summer sales meant consumers were more willing to buy bigger items, they became much gloomier about the outlook for their personal finances.
He said fears about employment in the Mid-West in the wake of the Shannon controversy, and about job losses in the construction sector, were likely to have fuelled worries about the labour market.
The economist added that fears about another interest rate rise, falling stock markets and a rebound in inflation probably contributed to fears about household finances.
