A survey which measures how Irish consumers feel about the economic outlook fell to a new low last month.
The consumer sentiment index, compiled by the ESRI and IIB Bank, dropped to 48.8 from 56 in April. April's figure was the previous lowest in the 12-year history of the survey.
IIB economist Austin Hughes said a more threatening world economic outlook was raising fears about job losses, while surging oil and good prices were putting pressure on household budgets.
The index of current economic conditions fell from 75.1 in April to 72.9. The forward-looking index - which measures how people feel about the outlook for the coming months - was down from 43.1 to 32.6.
Mr Hughes said previous falls in the index had been mainly due to nervousness about the broad economic outlook, but the most worrying aspect of this survey was a sharp deterioration in how consumers viewed their own personal finances. He blamed this on higher oil and food prices, and a feeling that there is little hope of an early cut in euro zone interest rates.
