Consumer sentiment drops to six-month low as interest rates increase

Reuters

Consumer sentiment slumped to a six-month low in September, a survey showed on Friday, pointing to an increase in interest rates and higher fuel costs as the likely reasons.

The Credit Union Consumer Sentiment index fell to 58.8 in September from 62.2 in August. The index stood at 77 in February 2022, before Russia's invasion of Ukraine, and dropped to a 14-year low of 42.1 last September.

"The mood of Irish consumers darkened notably in September," the Credit Union said in a statement. "It appears that a weaker trend is now becoming established."

The survey showed an improvement in how consumers perceive the outlook for employment. But only one in 20 of consumers surveyed said they expected their personal finances to improve in the coming 12 months.