Irish consumer sentiment did not change between September and October, following September's huge drop.
According to the KBC Bank Ireland/ESRI Consumer Sentiment Index this is because slightly more positive views on the outlook for the Irish economy offset continuing concerns about household finances.
KBC economist Austin Hughes says that the underlying trend is still falling, largely reflecting the massive drop reported in September.
It also shows there has been some deterioration in Irish consumer sentiment in the past few months even if the October report suggests confidence has stabilised lately.
Mr Hughes said that this may hint that Irish consumers feel they have braced themselves for the probable scale and range of painful adjustments that Budget 2013 may inflict on their household spending power.
KBC says two elements of the sentiment survey concerned with household finances weakened further in October. It says that while concerns relating to Budget 2013 have been the key driver of poorer Irish consumer sentiment of late, they are not the only threats to household spending power.
Mr Hughes said that the survey period saw the announcement of imminent increases in electricity and gas bills while the Central Bank argued that domestic wages need to fall further to assist the competitiveness of the Irish economy.
In these circumstances, Mr Hughes says, it is hardly surprising that consumers saw little prospect of any early easing in pressure on spending power.
