Consumer sentiment static

IRISH SHOPPERS may not radically curtail their spending this year, the results of a survey released yesterday indicate.

The monthly Consumer Sentiment Index, which measures how shoppers are influenced by factors such as the jobs market and the general economy, remained flat in March.

The IIB/Economic and Social Research Institute-sponsored index dipped slightly to 63.3 in March from 63.5 the previous month.

Commenting on the result, IIB chief economist Austin Hughes said the fractional fall could indicate that consumers have already braced themselves for tough times ahead.

But he warned that their reaction to the markets turmoil that began on St Patrick's Day could drive the April index to a record low.

"That said, there are signs in the March data that sentiment is not in free fall," Mr Hughes said.

"If this is confirmed by readings in the next two or three months, it may point to a reasonably contained slowdown in Irish consumer spending through 2008."

The March reading showed Irish shoppers were more optimistic than their American, continental and British counterparts.

Mr Hughes suggested yesterday this was because there was a sharp decline in sentiment last year, which reflected that Irish people recognised the signs of emerging economic woes earlier than others.

"The key question is whether Irish consumers have braced themselves sufficiently for what looks like an increasingly challenging year for the Irish economy," Mr Hughes added.