Honohan: Fall in consumer spending will continue to 2013
Central Bank governor Patrick Honohan has said the fall in consumer spending will not stop until next year.
Honohan said that, despite all policy efforts, bank lending for the purchase of goods and services remained timid.
He said adverse external factors had been holding back the Irish economy, and added the continuing high rate of personal savings and the austerity measures were also significant factors.
"Only in 2013 does the Central Bank expect domestic demand to stop falling," he said.
"Despite the fact that exports have held up, adverse economic factors have been holding the Irish economic activity back."
