Irish consumer sentiment held steady for the third consecutive month in December as increased concerns about economic outlook were offset by easing worries around household finances, according to the latest Credit Union Consumer Sentiment Survey.
The survey, compiled by Austin Hughes in partnership with Core Research, shows an index reading of 73.9 for December, slightly down on the 74.1 reading from both October and November.
This December figure remains well below the long-term survey average of 84.3, signalling that Irish consumers sentiment is still quite subdued.
However, this reading is a significant improvement on last year’s 62.4 reading in the same month, and slightly above 2024’s average reading of 71.6.
While this indicates that consumer fears have eased somewhat, Irish shoppers are still cautious about spending.
On a macro level, the key risk focus of late has been the potential damage to the Irish economy from US policymaking following the US presidential election last month.
This – in addition to the news that house prices might be overvalued by 8-10% according to the Economic and Social Research Institute – could slightly threaten the health of the multinational sector in Ireland.
Household living costs have also continued to increase despite easing inflation, with grocery prices rising from 3.3% year-on-year to 3.6% year-on-year, according to Kantar.
More broadly, the Central Statistics Office (CSO) published data which shows that – after adjusting for inflation – economy-wide household income was 2.4% higher in the third quarter of 2024 than a year earlier.
‘Continuing To Improve’
The relatively level sentiment however reflects positive changes, with the ECB cutting interest rates in the December survey period and several reports pointing towards the prospect of solid wage growth in the new year.
Commenting on the survey, David Malone, CEO of the Irish League of Credit Unions, said, “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.
“Both in relation to financial opportunities and challenges they may face now and in the year ahead, Irish consumers can always count on the support of their local credit union.”
Read More: Irish Consumer Steady For November As Easing Costs Counter Future Uncertainty
