Consumer confidence have dropped to its lowest level since January 2021, when the State was in the midst of a strict Covid-19 lockdown, according to research from KBC.
The bank's Irish consumer confidence survey revealed the impact of the war in Ukraine and soaring energy prices are being felt across the economy, while 85 per cent of people stated they would cut back on spending due to inflation.
The personal finance expectations of households deteriorated markedly in March, however, up to March 6th there was no evidence of declines in daily card spending.
Despite this, previous predictions that consumer spending in 2022 would increase to 7.3 per cent are likely to take a hit as the year continues.
In contrast, job growth has remained strong, with unemployment figures continuing to decline since the easing of Covid restrictions in January.
Meanwhile in the property market, residential property transactions in January and February increased sharply by 19 per cent, up €3 billion, showing a 14 per cent increase on the same period last year.
Davy stockbrokers said the number of residential transactions is reflective of the current demand in the market, surpassing pre-pandemic levels despite tight availability.