Irish Consumer sentiment fell unexpectedly in November indicating that the Irish consumers may be having second thoughts about the strength of the economy.
The IIB/ESRI Consumer Sentiment Index fell to 92.6 from 99.6 in October reversing the gains of recent months.
Despite the reversal, IIB's economist Mr Austin Hughes pointed out that the reversal may be just a glitch as consumers take stock of their situation after steady gains over the summer months.
On a slightly gloomier note, the slowdown may suggest a hint of second thoughts on the part of consumers as to whether a renewed boom is under way.
A slew of bad economic news including rising oil prices, weak dollar and the resurgence of 'rip-off Ireland' in the media may have dented consumer confidence, Mr Hughes said.
Concerns about tomorrow's budget may also have weighed on consumers. Fears of property tax increases, stealth taxes and Mr Cowen's efforts at talking down the prospect of tax cuts have had an adverse effect on consumers' assessment of the current climate.
The Government's unusually low-key build-up to this year's budget may have had the effect of closing consumers' chequebooks too tightly. Mr Hughes pointed out that an excessively cautious budget could damage fragile confidence to the same extent as an excessively generous one.
Looking at the longer term, economists still believe that the trend in consumer confidence is still upward and a broadly neutral budget tomorrow would go some way to giving consumers a clearer outlook going in to 2005.