Irish consumer sentiment at 3-year low

Worries about job security and the impact of higher borrowing costs drove Irish consumer sentiment to its lowest level since …

Worries about job security and the impact of higher borrowing costs drove Irish consumer sentiment to its lowest level since December 2003 in March.

The IIB Bank/ESRI Consumer Sentiment Index fell to 78.5 from 84.9 in February. In December 2003 it was at 78.3.

"Another spate of high-profile layoff announcements has made the average consumer a good deal more worried about the possibility of losing his or her job," IIB Bank chief economist Austin Hughes said.

"Sentiment was also hit by another rise in ECB interest rates in early March as well as a rebound in world oil prices and turbulence in global stock markets."

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A number of companies, including Motorola and Proctor & Gamble, cut their Irish workforces in March, adding to a string of job loss announcements in January and February.

Mr Hughes said a "feel-bad factor" was setting in despite a relatively robust outlook for the Irish economy and the boost to spending power from maturing government-backed savings schemes.

Significant announcements of new jobs elsewhere in the country had also failed to settle nerves, he added.

The expectations component of the index showed consumers were notably more pessimistic about the outlook for the coming year, falling to 65.4 from 73.8 in February. The index of current economic conditions fell to 98.1 from 101.4.