Irish consumers get post-Christmas blues

Consumer sentiment  fell in February for the first time in seven months as households scaled back spending plans following the…

Consumer sentiment  fell in February for the first time in seven months as households scaled back spending plans following the end of post-Christmas sales.

A monthly index compiled by Dublin-based IIB Bank and the ESRI dropped to 82.0 in February from 85.7 in January - the first monthly decline since last July.

The index stood at 78.3 in December.

"The weaker reading was entirely a reflection of a poorer buying climate as post-Christmas sales drew to a close," said IIB Bank's chief economist, Mr Austin Hughes.      "This suggests Irish consumers are likely to be very cautious in their spending in the year ahead," he added.

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However, the survey showed consumers were slightly more upbeat about the broader economic outlook, employment prospects and their own financial situation over the next 12 months.

Mr     Hughes said similar declines recorded last month in consumer sentiment measures in the United States, Britain and France  probably reflected more fundamental concerns.      "Job worries have come to the fore in the US and France of late while higher borrowing costs are hitting sentiment in the UK," he said.

He concluded that the underlying trend in the Irish economy remained modestly positive but that consumers continued to be extremely cautious.