‘Budget speculation leading to consumer fear’

Consumer sentiment plummeted to 60.2 in September, having hit a five-year high of 70.0 in August, according to the latest KBC Bank/ESRI Consumer Sentiment Index.

Last month’s decline reversed most of the improvement seen through 2012 with the Sentiment Index now back at its weakest level since last February.

In their analysis of the August sentiment survey, KBC and ESRI suggested cuts to public spending and tax increases would test the resilience of the mildly positive sentiment evident for most of 2012.