A survey has shown that consumers were more worried about the economic outlook in July, hit by another increase in ECB interest rates and continuing weakness in the Irish economy.
The consumer sentiment index, compiled by KBC Bank and the ESRI, fell to 55.9 from 56.3 in June.
Only one in five consumers expects an improvement in the Irish economy in the next 12 months, with only one in six expecting unemployment to drop. The part of the survey which asked consumers about their personal finances also showed a fall.
KBC economist Austin Hughes said surveys in other countries had indicated similar fears among consumers about economic conditions.
'The failure of European policymakers to get to grips with the debt crisis, set alongside the absence of clear signs of improvement in domestic economic conditions or prospects, means Irish consumers remain fearful,' he said.
The economist said that although the index had fallen recently, it remained well above its all-time low level of July 2008. He pointed out that the July survey was compiled before the EU summit on July 21 and the recent turbulence on financial markets.
