Economic sentiment here has fallen to a new low this month, according to a new survey, as Brexit concerns mount.

The Bank of Ireland Economic Pulse index, which measures the attitudes of both consumers and businesses, fell 2.9 points during September to 76.2. 

That represents a drop of 16.5 points on a year earlier.

The bank said Brexit uncertainty as well as a general nervousness about the economy are weighing on households. 

"September was a turbulent month in the UK following Prime Minister Johnson's attempt to suspend parliament and even though MPs took steps to block a no deal Brexit, uncertainty is continuing to affect economic sentiment in Ireland," said Dr Loretta O'Sullivan, Group Chief Economist with the bank.

"The Consumer and Business Pulses dropped for a third month running taking both series to new lows," Dr O'Sullivan said.

"The regional readings were also down, as a picture emerged of households and firms on edge, with little expectation of the upcoming Budget providing any major relief." 

Carried out by Ipsos MRBI on behalf of Bank of Ireland, the survey is conducted in conjunction with the European Commission.

It involves 1,000 households and approximately 2,000 businesses being questioned on a variety of topics including the economy, their financial situation, spending plans, house price expectations and business activity.  

All the major readings showed a dip in confidence, with the consumer pulse dropping 1.5 points compared to August.

This was blamed primarily on Brexit, as well as worries about the economy and a lack of optimism that the Budget would bring any great boost.

Also lower, the housing pulse found 45% of those surveyed think house prices will rise in the next 12 months, while one in five predict they will fall.

Brexit and concerns about infrastructure also drove the business pulse lower, Bank of Ireland said, with housing, telecoms and transport of concern in some or all areas.

Nine in every ten of those firms surveyed said they expect Brexit to negatively impact the local economy in their region in the coming year. 

Regionally the largest drop in sentiment were seen in Leinster, excluding Dublin, as well as in Munster.