A lull in the global trade war and a slight easing in living costs have led to a marginal increase in consumer confidence here.
The Credit Union Consumer Sentiment Index’s reading for June remains well below the reading in June 2024, suggesting households remain concerned about their economic future.
While the increases in the index in both between May and June were fractional, they represent the first back-to-back gains in sentiment since July 2024.
Alongside a pause in tariff-related conflict, the survey of consumers took place against a backdrop of falling interest rates, energy costs and strong economic data.
Economist Austin Hughes said: “As uncertainty and a threatening geopolitical landscape are now almost permanent features of the Irish economic landscape, consumers have already adapted their behaviour to these developments in recent years.
So, the threat of a trade war or even the increased threat of military conflict are not altogether radical changes in the landscape.
The survey also sought consumers’ views on their summer travel plans. It found Irish consumers appeared to be in a slightly stronger position in terms of their holiday spending power now than they were a year ago. However, the improvement is quite small.
About one in four consumers (26%) plan to spend more on their holiday than they did a year ago. Broadly similar numbers plan to either spend the same amount (25%) or say they are unable to afford to go on holidays this year (22%).
Overall, the results suggest no significant change in planned holiday spend this year, which in turn hints at no marked change in the financial circumstances of most Irish consumers.