Renewed concerns over energy prices have pushed consumer sentiment down, according to the latest consumer sentiment by the Irish League of Credit Unions.
The survey found that the sentiment fell marginally in September 61.2 following a slight increase in August to 63.2.
This is well below the long-term level of 83.0 or the most recent ten-year average of 76.1.
The researchers explain the “nervous mood” among Irish consumers by “a combination of economic uncertainty and financial pressure”.
Consumers have been “consistently negative about the outlook for the Irish economy”.
The repeated warnings about the sustainability of Government’s spending model have also been causing concerns.
The largest month-on-month decline in sentiment in September was in relation to consumer thinking around the outlook for jobs, caused by notable cooling in job growth and further lay offs by tech employers.
Not only in Ireland, but across the euro area, consumers were “gloomier” in September, with confidence weakening after four months of recovery.
Sharp increases in motor fuels of late as well as the threat of higher inflation to come, that was reflected in the European Central Bank’s decision to raise rates in early September, likely weighed on sentiment.
According to the CEO of the Irish League of Credit Unions, David Malone, “the drop in consumer sentiment in September is not at all surprising, with worrisome increases in global energy prices of late emphasising the strains many Irish households will face in keeping their homes bright and warm through the winter months ahead.”
