Worries over the economy and a slowdown in Ireland's property sector knocked Irish consumer sentiment to a near four-year low in July, a survey published today showed.
The IIB Bank/ESRI Consumer Sentiment index fell to 74.7 from 83.2 in June - its lowest point since October 2003. The index was at 90.9 in July 2006.
However, the report's authors cautioned the drop in sentiment did not indicate "an economic slump", with overall spending likely to remain healthy.
A cooling property market and lower levels of house building have led to jitters of a spillover into other areas of Ireland's thriving economy and fears of an impact on employment prospects.
"A spate of gloomy forecasts for the property market and the broader Irish economy have made consumers much more nervous about the outlook for jobs and economic activity," said Austin Hughes, chief economist at IIB Bank.
The European Central Bank left interest rates on hold at 4 per cent earlier this month, but it is expected to increase them in September, putting further strain on mortgage payments.
On the jobs front a number of high-profile firms, including Motorola and Procter & Gamblehave cut their Irish workforces this year with others such as Xerox poised to outsource positions.
"We don't think the July results herald an economic slump," Hughes said.