Despite a slight increase in consumer confidence, a recent survey reveals that Irish consumers remain uncertain about Budget 2025’s impact on their financial outlook.
According to the latest Credit Union Consumer Sentiment Index, published in partnership with Core Research, the index reading climbed to 74.1 in October, a modest improvement from September’s 71.9. While expectations for the next 12 months saw a marginal rise, and spending plans saw a moderate increase, consumers remain cautious.
Mixed Reactions to Budget 2025 Measures
Interestingly, the survey suggests that consumers haven’t fully embraced Budget 2025, with 47% stating that the measures introduced are unlikely to improve their living standards. Only 4% anticipate a significant improvement.
Economist Austin Hughes, author of the report, sheds light on these findings, noting, “Several explanations can be advanced for these survey findings. The tax and welfare changes announced in Budget 2025 are broadly comparable in scale to the impact of indexation – meaning they act to broadly maintain rather than boost or reduce living standards.”
Hughes further explains, “A substantial element of Budget measures, roughly €2bn out of €4.7bn, took the form of temporary cost-of-living measures. Because they won’t form part of ‘permanent income,’ they may not be seen as impacting on living standards.”
Varying Perceptions Across Demographics
The survey highlights a disconnect between expectations and realities. Consumers outside Dublin, females, those struggling to make ends meet, and older individuals (particularly the 55-64 age group) are more likely to express skepticism towards Budget 2025’s positive impact. These variations may reflect income disparities, ongoing financial pressures, and concerns regarding pension adequacy.
Hughes suggests, “Access to suitable healthcare or housing are seen as key drivers of many consumers assessments of their living standards. Where this is the case, Budget 2025 measures are unlikely to have markedly altered consumers’ sense of their current circumstances.”
Despite these concerns, David Malone, CEO of the Irish League of Credit Unions, offers a positive outlook, stating, “The small uptick in Irish consumer confidence in October is encouraging…As we head towards the turn of the year, the survey serves to emphasize both the opportunities and challenges that Irish consumers now face.”
Are you concerned about managing your finances in the coming year? Your local credit union is here to help.