DUBLIN, (Reuters) – The emergence and spread of Omicron’s highly transmissible Omicron variant in Ireland caused a drop in consumer sentiment. This was evident from a Wednesday survey.

KBC Bank Ireland’s consumer sentiment index fell to 74.9 from 83.1 November, to reach its lowest point since February.

Austin Hughes, KBC Ireland’s chief economist said the Omicron variant has caused consumers to be uneasy and that they might still face the consequences of the pandemic.

A rise in inflation, energy and costs, in particular, along with the effect of new restrictions to employment by the public health could be contributing to this sentiment.

Hughes stated that although all five elements of KBC Bank’s consumer sentiment survey suffered in December, Hughes claimed the most successful elements were consumers thinking about how their finances will evolve over the next 12 months.

These areas show that even though Irish consumers might be struggling, their resilience shows they’re not losing heart.”