Research from economic analysts Consumer Futures has suggested that people in the province believe that levels of unemployment will increase in the near future.

The report, which focuses on the fourth quarter of 2001, seem to reveal that optimism has slumped throughout Northern Ireland in terms of what the next twelve months will offer.

Despite reports of spiralling consumer spending, the proportion of people interviewed who considered now a good time to make a major purchase had declined significantly, with a reduced number of households expecting their overall finances to improve during 2002.

In addition to fears about income growth, the proliferation of headlines about job losses - both locally and throughout the UK - has also made respondents cautious when describing the future, as lessened confidence in the economy impacts upon the labour market.

However, Melanie Lansbury, author of the report, said that the results were inevitably showing the imprint of the recent terror attacks on the UK, adding: "Given the fact that this was the period covering the aftermath of September 11th, we expect confidence to have risen subsequently," a conclusion which echoed the outcome of a recent CBI report into business confidence in the province which revealed that "the overall trends – while still negative – are heading the right way back upwards". (CL)