Households yet to see improvements in finances as prices continue to rise

This has led to the consumer sentiment index falling back for a third month in a row.

The mood of consumers has been darkened by ongoing price rises, including higher costs of petrol and diesel, as well as TV, mobile and broadband.

A string of jobs losses and restaurant closures has also contributed to the negative feelings.

A quarter of respondents said they will not be able to afford a holiday this year, according to the April Credit Union Consumer Sentiment Survey.

There has been unsettling news on the employment front in recent weeks.

There were job losses from restaurant closures, redundancies at Tara Mines, Citigroup and Mediahuis Ireland (the publisher of the Irish Independent), as well as downbeat recruitment reports from Morgan McKinley and Indeed.

The credit union sentiment survey, which is carried out in partnership with Core Research, shows an index reading of 67.8 for this month, down modestly from last month’s figure of 69.5.

It marks the third monthly decline in a row, following four successive monthly increases between October and January.

The current reading of 67.8 is significantly below the long-term average of 84.6, implying consumer confidence is quite subdued at present.

Four of the five key elements of the survey posted weaker readings this month compared with last month. The largest fall was in relation to the outlook for jobs.

A recent report from the Restaurants Association of Ireland suggested restaurant closures may have led to nearly 1,600 job losses in February.

When it came to questions about household finances, the surveyors found that more people feel their financial circumstances have worsened.

Economist Austin Hughes said: “The April survey saw a continued weakening in consumer thinking on the prospects for their household finances in the year ahead.”

He said this probably reflects a number of high-profile price increases taking effect this month. These range from higher excise duty on motor fuels to increased charges for broadband, mobile and TV services.

The strained financial situation and emerging concerns about job security led consumers to reduce their buying plans for the third month in a row.

Mr Hughes said this shows consumer spending will be ­cautious, but it does not signal a pull-back.

“Indeed, increases in population and numbers at work imply healthy growth in household outlays. However, the sentiment survey continues to suggest the increase will be decent rather than dramatic,” he said.

Asked about holiday plans, most consumers indicated they will cautious in their spending. About 23pc said they cannot afford a holiday.

Another 28pc said their holiday spend will be the same as last year. A quarter said they will spend more on their holiday than last year and 15pc said their holiday spend will be down on last year.

“Irish consumers appear to be in a slightly stronger position in terms of their holiday spending power now than they were a year ago,” Mr Hughes said.