Government uncertainty may be driving decline in consumer sentiment

Uncertainty surrounding the next Government may be contributing to a decline in consumer sentiment.

It has seen the largest drop in seventeen months, according to the latest index published today by the ESRI and KBC Bank.

Global concerns and Brexit worries are also key drivers.

Generally Irish consumers remain positive, however ESRI economist David Duffy says the lack of a government may be making them more cautious.

“That (the lack of a government) might have some impact - we don’t necessarily pick it up from the survey - but it might be reflected in people becoming more cautious and opting for a wait-and-see answer rather than selecting a positive or negative outlook,” said Duffy.

“That uncertainty may be having some outlook, it seems to be primarily driven by economic concerns.