Consumer sentiment slips in June

Consumer sentiment slipped this month and is at its lowest level since February, according to new data.

The latest KBC Bank/ESRI sentiment index for June is at 56.3, down from 59.4 in May.

The dip is being attributed to increasing oil prices and interest rates as well as job uncertainty.

Chief Economist with KBC Austin Hughes said there was no bounce in sentiment from the visits of the US President and the Queen of England.

"I think it's a little surprising that we didn't see some sort of bounce following the visits of Obama and the UK monarch.

"I think what it's telling us is that consumers realise their problems are fairly deep-rooted, so the fact that someone comes and waves at them doesn't really inspire a feelgood factor."

Retail Ireland, the representative body for the retail sector in Ireland, said the newly published figures showing weakening consumer sentiment were disappointing.

"Overall economic growth is likely to remain fairly flat until we see an improvement in consumer confidence," Retail Ireland director Torlach Denihan said.

"Consumers remain too frightened to spend because of uncertainty.

"Government must do everything it can to give consumers clarity on the economic situation and in particular it must clearly spell out as early as possible the likely impact of the budgetary adjustments on household finances. If Irish consumers start spending again a solid period of economic growth could quickly emerge."