Irish consumer confidence shows fall

Irish consumer confidence fell in February as concern over job losses increased, and shoppers closed their wallets after the January sales ended.

The IIB/ESRI consumer sentiment index for February found that consumer confidence fell back to 63.5 from a reading of 67 in January.

Austin Hughes, IIB's chief economist said "the key driver of the deterioration in Irish consumer sentiment in February was a sharp worsening in job market prospects".

"A barrage of job losses announcements was the dominant influence."

A number of companies, including those in the high-tech sector such as Allergan and GlaxoSmithKline, are cutting their Irish workforces. Losses in these sectors are worsening the impact of the construction slowdown.

The index found that the three-month moving average was relatively stable at 64.4 from the 64.3 recorded in January. The three-month moving average stood at 89.3 in February 2007.

The consumer sentiment index comprises two sub-indices: an index of consumer expectation that focuses on how consumers view prospects over the next 12 months and an index of economic conditions, focusing on the present.