Irish consumer sentiment weakened in the second quarter of the year, with consumers in Dublin increasingly concerned about employment, according to a new survey.

The consumer sentiment survey, carried out by KBC Bank and the ESRI, found the drop in confidence was slightly more pronounced in the capital than across the rest of the country.

The survey examined the mood among consumers in the second quarter of this year, compared to the first quarter.

It found the mood in Dublin was driven by concerns about employment and increasing uncertainty about the global economic environment.

KBC economist Austin Hughes said consumer sentiment had been steadily increasing, but in the last quarter consumers have become a little bit more nervous.

He said the survey period saw a high-profile industrial relations dispute at Luas that may have prompted some Dublin consumers to downgrade their assessment of the outlook for the jobs market in Dublin.

"There's a more uncertain global climate and, in Dublin, consumers are hearing about the threatened Intel lay-offs, and others. It's all making them a little bit more nervous about the jobs market."