IRISH CONSUMER SENTIMENT fell sharply for the second month in a row in April as concerns about living costs intensified, according to a new survey.
A study conducted by KBC Bank Ireland found that the weakest elements of the April survey were those focused on household finances and spending, suggesting increasing strains in making ends meet, according to experts at the bank.
The consumer sentiment index fell from 67.0 in March to 57.7 in April. The index now stands some significant distance below its long term average of 86.6, “signalling a very nervous Irish consumer at present”, the statement read.
The 9.3 point drop in the sentiment index is very similar to the 10.0 point seen between February and March.
The declines in the index in recent months represent unusually large moves for the survey and signal a marked change in the thinking of Irish consumers of late.
The index also found that Irish consumers became increasingly worried about the broader outlook. Seven out of ten consumers expect the Irish economy to be weaker in twelve months’ time while nearly half expect unemployment to be higher.
Unlike March, the weakening in expectations for the jobs market was slightly larger than for general economic prospects.
The most pronounced weakening in the April sentiment survey was in those elements focused of consumers’ own spending power and spending plans, the statement from KBC said.
“In light of the pronounced upward pressure on energy costs, both actual and announced, as well as markedly increased concerns in relation to food prices, it is scarcely surprising that there was a marked downgrade both of the trend in household finances through the past year and the outlook for the next twelve months,” the survey read.
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