As 2024 draws to a close, Irish consumers are still having to navigate cost-of-living pressures, however they are slightly less negative about their own household finances, the latest consumer sentiment index from the Irish League of Credit Unions has found.
The Irish consumer sentiment index stands at 73.9 for the month of December, a marginal decline from the previous two months but a notable improvement on December 2023, when it stood at 62.4.
Consumer expectations have been buoyed by expectations of easing inflation, rising wages, and lower borrowing costs, and they are planning to spend a little bit more as a result.
Improved spending plans
Spending plans have risen for the fourth consecutive month, suggesting that Irish consumer spending should be on an ‘improving trajectory in 2025 unless the global economic outlook deteriorates markedly’, the report noted.
At the same time, however, economic challenges such as living costs, inflationary pressures, and broader global uncertainties – including potential policy shifts in the United States – weigh on sentiment.
‘Continuing to improve’
“It is encouraging that the December sentiment survey suggests consumer spending plans are continuing to improve as household finances are expected to recover in 2025,” commented David Malone, CEO of the Irish League of Credit Unions.
The report also found that opinions are divided as to whether Ireland is faring better than other economies, with 30% believing it is faring better, 31% seeing it as worse, and 36% viewing it as broadly similar.
When asked about the state of the economy in ten years’ time, 30% said that they anticipate a stronger economy, 34% expect a weaker economy, and 29% said that they anticipate an economy which is similar to the current one.
Elsewhere, men are generally more positive than women about Ireland’s economic standing, the report found.
‘Just as Dickens pictured Scrooge being willing and able to amend his ways and alter his and others’ futures, the encouraging reality is that the Irish economy currently has the capacity, financial and otherwise, to deliver a favourable and fair future for all both in terms of incomes and economic and social infrastructure,’ it noted. Read more here.
