85% of consumers say they plan to cut back their spending this year.
The KBC Bank Ireland consumer sentiment survey recorded a ten point drop this month as the war in Ukraine and inflation start to hit people's pockets.
It had been hoped that money would flow more freely in the economy following the lifting of Covid restrictions.
However, economist Austin Hughes says the public have a gloomier outlook for the rest of the year.
"It was a combination of higher inflation and living costs, along with more nervousness about what the future might hold.
"Both feat and financial troubles are causing consumers to pull in their horns."
