Irish consumer sentiment remained steady in November, reflecting cautious optimism amid ongoing economic uncertainty. The latest Credit Union Consumer Sentiment Index, in partnership with Core Research, recorded an index score of 74.1 for November, unchanged from October’s figure. This stability marks only the second time in the nearly 29-year history of the survey that the index has remained identical from one month to the next.
Economist Austin Hughes, who authored the report, attributed a modest weakening in the economic outlook to concerns over the US election results, as well as trade and tax revenue issues. However, Hughes pointed to a rise in consumer spending plans, which he suggested were likely influenced by the upcoming holiday season and promotional events like Black Friday.
“While the outlook is a mixed picture, it’s still considerably better than last year and moving in the right direction,” Hughes said. He explained that consumers remain nervous about the global economy, particularly in light of President Trump’s economic policies, which are raising concerns about Ireland’s economic future and the broader global market.
On a positive note, Hughes highlighted a slight easing of cost pressures, which may be encouraging consumers to spend more. The upcoming Christmas season appears to be a central factor in this increase in spending plans, as many consumers are focused on making this holiday season more enjoyable following a challenging few years.
While sentiment in the US is showing some signs of improvement, particularly regarding employment, there is growing concern about rising living costs. According to Hughes, the price of consumer staples, such as eggs—up 82% in the past three years—has caused significant financial anxiety for American consumers, even as the broader economy shows growth.
The survey found that, while conditions have stabilized, Irish consumers are still cautious. Spending plans for Christmas remain subdued, with many planning to limit their outlays. Just one in ten Irish consumers intends to spend more on Christmas this year compared to last year. The report also revealed that 10% of people are unsure how they will pay for Christmas, with 6% relying on family and friends for financial support.
Women, consumers outside Dublin, and those aged 45-54 are more likely to report plans to cut back on Christmas spending. Additionally, individuals who struggle to make ends meet are four times more likely to express uncertainty about how to finance their holiday purchases. Men were found to be three times more likely to plan higher Christmas spending than women.
The report underscores a growing divide, with some Irish consumers looking forward to a less austere Christmas, while others face financial uncertainty. Despite improved economic conditions at the macro level, the festive season is expected to be a time of both celebration and concern for many.