Eighty per cent of consumers expect unemployment to rise this year - twice as many people as in 2007 - a new survey found.
The monthly consumer sentiment index compiled by IIB Bank and the ESRI, recorded a drop from 63.1 in November 2007 to 62.7 in December 2007.
Analysts said the index remained close to the all-time low of 60.9 in July 2003.
The index, which records consumer confidence in the economic outlook for the coming months, highlights particular concerns over the housing market, rising interest rates and job losses.
The index has fallen in six of the last seven months.
IIB economist Austin Hughes said four out of five people surveyed were pessimistic about the economy and especially about the job market due to some high-profile redundancy announcements, as well as fears about job losses in the building industry.
Consumers' economic expectations stabilised at 49.3 in December but were well below the 87.7 figure for December 2006.
"There is a clear sense of foreboding about what 2008 may hold for the Irish economy," Mr Hughes said.