Consumer confidence rose marginally in October, but the underlying trend remains downwards, a survey published today showed.
The IIB/ESRI consumer sentiment index climbed to 86.7 last month from 86.5 in September, up from 85.0 in October 2005. However, the three-month moving average fell for the eighth month in a row - to 86.0 from 87.4 recorded in September.
"The outlook for the labour market remains a concern, and consumers continue to cite rising interest rates and prices," the ESRI's David Duffy said, noting only one in five consumers expected unemployment to fall over the next 12 months.
The expectations component of the index rose to 79.8 in October from 79.5 in September, while the index of current economic conditions was unchanged at 97.
IIB Bank chief economist Austin Hughes said in the light of an interest rate rise in October and the prospects of a further hike in borrowing costs before Christmas it was not surprising the buying climate continued to deteriorate last month.
"This aspect of the survey has been subdued for some time as cautious consumers adjust their spending patterns to higher living costs," he said.
"These results suggest the average consumer is sensible rather than the spendthrift often suggested by media reports."