Consumer Sentiment fell sharply in the month of December.
According to the latest Consumer Sentiment Index the reading last month of 49.8 fell well below the 2012 average of 61.0.
The monthly decline is one of the largest on record.
The figures also show a more negative perception by consumers of their current and future financial situations.
It is thought worry about measures announced in the budget contributed to the weakening in consumer sentiment.
'One of the largest drops on record'
The falling trend continued in the 3-month moving average - decreasing from 61.6 in November to 58.1 in December.
Commenting on the results Kevin Timoney of the ESRI said "The monthly decline for December 2012 is one of the largest on record".
"In recent years the December reading has been weak, possibly reflecting a budget impact. In the past there has been some recovery in January due to the impact of the January sales on sentiment".
"Another factor underlying the result is a move from a neutral to a more negative assessment by respondents. The perception by households of their current and future financial situations was considerably worse in December, while the purchasing climate for durable consumer goods fell sharply to a four-year low" he added.
The ESRI also says that despite the overall negative picture, the outlook for unemployment in the next 12 months was somewhat better in December, sustaining the improvement seen for this measure throughout the course of the past year.
But Austin Hughes of KBC Bank says some people's fears may have been exaggerated.
