Consumer sentiment fell in July, according to a survey by KBC Bank Ireland and the ESRI, as local and international factors made people more apprehensive.
The KBC/ESRI Consumer Sentiment Index stood at 99.7 in the month – down more than three points on the June figure but almost ten points higher year-on-year.
KBC Bank’s chief economist Austin Hughes suggest that the situation in Greece raised consumers’ concerns about the fragility of the global economy.
The high-profile closure of Clery’s in Dublin may also have underlined fears about the issues that still remain within the Irish system, he said.
However Mr Hughes does not believe the monthly decline represents any marked deterioration in consumer mood, and broadly mirrors drops seen in the United States and the euro area.
Within the survey, consumers reported a decline in their current conditions and expectations, as well as their personal financial situation over the past twelve months.
Consumers’ general economic outlook was also down, falling 6.1 points to 73.9, while the outlook for unemployment also deteriorated.
However consumers do expect their financial situation to improve in the year ahead, with that category rising 7.6 points to 117.7.
Despite this, though, there was a fall in the number of respondents planning a major purchase in the near future.
