Irish consumer sentiment edged higher in January but was well down on a year earlier as “nervousness” continued to dominate the mood of Irish shoppers, according to a report from the Irish League of Credit Unions.
The report shows an index reading of 64.7 for January 2026 – a clear improvement on the 61.2 figure recorded in December, but markedly lower than the January 2025 reading of 74.9, as well as the long-term survey average of 83.5.
“Although there is no consistent seasonal pattern to the sentiment survey overall, there is a strong tendency for January readings to be clearly stronger than the preceding December figures,” the report said.
“In the past 25 years, sentiment has only weakened twice between December and January, in 2021 on fears of a second Covid wave, and in 2009 when a crashing Irish economy prompted the prospect of severe austerity measures.”
It said the “normal January uplift” in Irish consumer sentiment owes much to a “seasonal switch-off” from economic and financial news over Christmas and new year holidays, coupled with an element of “new year positivity”.
“On this basis, we would not suggest that the January 2026 reading points clearly towards improving sentiment through the year ahead.
“That said, against a backdrop of growing geopolitical uncertainty as the survey period progressed, we would draw some encouragement from an improvement that brought the Irish consumer sentiment index to its highest level in nine months.”
The modest monthly gain in January speaks of a “nervous but not entirely negative” Irish consumer.
“If the usual tendency for February data to reverse at least part of January’s gains is repeated next month, that would suggest that nervousness continues to dominate the mood of Irish consumers,” the report said.
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“The current survey reading is still at a relatively weak level historically, implying personal finances remain under strain for many households.”
All five elements of the January reading of the report showed some degree of improvement compared to their December levels, while all were weaker than the levels posted for January 2025.
There continued to be more negative than positive responses to all five elements of the survey. “This means that on balance, Irish consumers think their economic and financial circumstances are weakening rather than strengthening,” the report said.
The January data show consumers were a little less negative about the 12-month outlook for the Irish economy than in December. The jobs element of the report reversed about half of the decline seen in December.
The largest changes in the survey between December and January were in those elements of the survey focused on household finances.
“We would again expect some part of this to be seasonal and therefore temporary, and could be vulnerable to reversal when end-year credit card and heating bills arrive in coming weeks,” the report said.
Whether any “apparent easing” in cost-of-living concerns continues in coming months is “unclear”.
“Much will depend on any future price shocks as well as the vagaries of the Irish weather that will play a key role in determining the size of heating bills,” the report said.
“In the absence of energy credits or adjustments to tax bands, the likelihood is that pressure on family finances will remain an important issue for many in 2026.”