Irish Consumer Sentiment Holds Steady in December Despite Economic Concerns
Despite worries about the global economic outlook, Irish consumer sentiment remained stable in December, according to the latest Credit Union Consumer Sentiment Index. While consumers continue to grapple with the cost-of-living crisis, a newfound optimism about their personal finances has emerged, prompting plans for increased spending.
This resilience contrasts with preliminary reports showing increases in both US consumer sentiment and UK consumer confidence for December. Austin Hughes, Economist and author of the report, attributes the mixed December index to conflicting forces at play in the Irish economy.
“A range of recent commentaries have warned of large and increasing risks to the downside for the Irish economy because of the threat of marked changes in US policymaking and a more fractured global economy,” Hughes stated.
However, he adds, “a different picture is painted by the latest batch of indicators which point to healthy gains in activity and employment in the Irish economy of late.”
The December sentiment survey reveals heightened caution regarding the outlook for economic activity and jobs. Yet, with household incomes now outpacing inflation, consumers express less anxiety about their own financial prospects in the year ahead. This newfound confidence has fueled a surge in spending intentions.
Adding a unique twist to this month’s survey, respondents were asked to compare the Irish economy to Dickens’ “A Christmas Carol” – reflecting on its past, present, and future.
“Well to butcher the opening line of a Christmas Carol, the Irish economy of our parents’ generations (like Marley) was dead to begin with,” Hughes remarked. “On most ‘macro’ metrics, the Irish economy today is far healthier than was the case twenty, thirty or fifty years ago,” he added.
Ready to understand how these economic trends are impacting your finances? Contact us today to learn more about our financial planning services.