Index shows fall in consumer confidence

Brexit is being cited as the main reason consumer confidence dipped in September.

The latest KBC Bank/ ESRI consumer sentiment index shows it slid down to a 21-month low.

People are also fearful over what will happen in the Budget and the cost of housing.

KBC Bank Ireland Chief Economist Austin Hughes says they are getting more nervous rather than negative about their spending power.

He said: "While current levels of the survey are still consistent with an improving Irish economy, the clear message of the September results is that the average consumer is more focussed on the problems they now face than any improvement they may have seen.

"There is little doubt that the increasingly loud and jarring ticking of the Brexit clock has unnerved Irish consumers.

"The threat posed by a possible ‘hard Brexit’ is notably amplified by high-profile cost increases in areas such as light, heating and housing while many consumers may feel their personal circumstances are very remote from recent reports of a return to the boom.

"Against this backdrop, it is likely that the drop in confidence overstates the change in the current conditions of the typical Irish consumer.