Budget hits consumer sentiment

Consumer sentiment fell to its lowest level in a year last month in what is being viewed as a negative blip rather than a wider deterioration.

The latest KBC Bank (Ireland)/ESRI consumer sentiment index, published yesterday, shows a reading of 49.8 points for December; down from a reading of 63.8 points for November.

The significant fall is being attributed to post-budget worries amongst consumers. However, the study’s authors feel the December data “significantly exaggerates” the deterioration in the mood of Irish consumers.