Gloomy consumer outlook revealed

CONSUMER CONFIDENCE in December plunged to levels not seen since the depths of the financial crisis.

New figures compiled by UCD Smurfit Graduate Business School and the Marketing Institute of Ireland show that, in the last three months of 2011, consumer confidence fell dramatically and was down 28 per cent from the middle of last year.

The December figure of -32 was on par with the lowest point in consumer confidence registered at the depths of the financial crisis in 2008/09.

Consumer spending continued to trend downwards in 2011, declining drastically in the last quarter and by 4 per cent compared to the same period in 2011.

The figures represent a 14 per cent decline from the peak of consumer spending in 2008.

Retail sales also declined in the year, with a drop in volume of 2.7 per cent and a drop in value of 1.8 per cent.

The authors of the report predict continuing challenges for the retail sector as the effects of reduced disposable income and higher fuel prices take hold.

While bar sales fell by 4.6 per cent in volume and fuel spending dropped by 1 per cent, the number of cars sold rose by 18 per cent, according to the monitor figures.