Irish consumers feel as though they are “just about coping” with financial pressures, prompted by “increasingly uncertain and largely negative” perceptions of global economic conditions, the Irish League of Credit Unions (ILCU) has said.
They are, however, “a little less glum” than their UK, US and European counterparts, whose individual economic outlook has hit near-record lows caused by “an extraordinary collapse” in consumer confidence.
The ILCU recorded a result of 61.6 on its monthly consumer sentiment index survey – “marginally above” its 59.6 average since March, when war on Iran began to affect the global economy. This is “materially below” the index’s 30-year average of 83, ILCU said.
Media attention on Budget 2027 and the Irish Fiscal Advisory Council’s criticisms of its spending levels “may have coloured consumer thinking” on the State’s economic outlook as much as the impact of artificial intelligence on economic activity and employment may have had, it said.
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David Malone, ILCU chief executive, said the survey’s findings “suggest that sentiment overall remains subdued and consumers continue to be nervous”, with households facing “diverse financial circumstances”.
Consumers expect living costs to rise on average by 3.5 per cent next year, the survey found, only marginally higher than the Economic and Social Research Institute estimate last month that consumer prices would increase by 3.3 per cent in 2027.
Up to four-fifths of respondents indicated they expected a price increase in their household energy bills, while 79 per cent expected the same for grocery costs and 71 per cent for other bills, the survey of 1,000 adults found.
Asked about their own household’s financial situation, 9 per cent described themselves as “very comfortable” while 30 per cent said they were “comfortable” or “managing well”.
Up to 28 per cent of respondents said they were “managing carefully” and 19 per cent were “managing with difficulty”, while a tenth said they were “struggling” and 5 per cent were “falling behind”.
Most respondents (77 per cent) said they expected a large, moderate or slight increase in their household costs in the coming year, with 13 per cent expecting a large, moderate or slight decrease, the survey found.
Up to 38 per cent expected a growth in household income, while 36 per cent foresaw no change and 24 per cent expected a drop.
Men were “far more likely” to self-report as being within the “comfortable” class, the report found, while Dublin-based consumers were “somewhat more likely” to be comfortable compared to their counterparts outside the capital.
