Irish consumer sentiment was steady but subdued in February, although consumers expressed concern over the impact of upcoming US policies on Ireland, according to the latest Credit Union Consumer Sentiment Survey.
The survey, compiled by Austin Hughes in partnership with Core Research, recorded a consumer sentiment at 74.8, almost level with January’s 74.9.
While consistency has been a good sign, particularly after a period of high inflation, sentiment remains far below the long-term average of 84.2.
Although there is no clear seasonal pattern, generally a strong January reading is followed by a much weaker February, with month-on-month declines seen between January and February in 20 of the last 25 years.
These results have bucked the trend.
US Policies
Hughes notes in the report that the monthly increase in January was relatively limited compared to previous years and posits that it may point to increasing concerns about US policies and their impact on Ireland since the inauguration of US president Donald Trump last month.
In spite of these concerns, Irish consumer sentiment has been largely unchanged through the five months since October 2024, when a boost from easing inflation countered uncertainty over the US presidential election and subsequent uncertainty over policies and tariffs.
However, stabilising could have come from the stay issued on tariffs.
Hughes said, “At the margin, President Trump’s initial tariff salvo against Canada, China and Mexico and his speedy postponement of measures against Canada and Mexico may have lessened Irish consumers immediate concerns somewhat.
“It should be noted that the White House’s signalling of an intention to place tariffs on cars, semiconductors and pharmaceuticals only emerged as the survey completed.”
He said that closer to home, outlook for the economy only weakened slightly while sentiment on jobs improved slightly.
Speaking about the results, CEO of the Irish League of Credit Unions David Malone said, “It is notable that the February sentiment survey suggests Irish consumers are bracing themselves for an uncertain economic landscape in 2025.
“Importantly, in such circumstances, they can be certain of the support of their local credit union to help them navigate the financial opportunities and challenges this may present.”
Read More: Irish Consumer Confidence Rises Slightly In January
