Food prices a blow for spending mood

RISING food and oil prices internationally are seriously undermining consumer sentiment.

Such concerns could result in an extended period of economic gloom as the US and Europe suffers from the backlash of sharply falling consumer spending, said Fortis Investments’ managing director and chief investment strategist, William De Vijlder.

His warning of protracted slow growth followed yesterday’s shock analysis from the Economic and Social Research Institute that Irish economic output would be 0.5% less than last year’s output level, effectively pushing the economy into recession.