Irish Consumer Morale Improves Slightly

Ireland’s Credit Union Consumer Sentiment Index increased to 64.7 in January 2026 from 61.2 in December 2025, marking the highest reading since March 2025. It also marked the third consecutive monthly increase in consumer confidence. However, while confidence is above April’s two-year low of 58.7, the level remains well below the 74.9 recorded a year earlier and the long-term survey average of 83.5, largely due to heightened concerns over US tariffs. There were more negative than positive responses across all five survey elements, and all five were weaker than a year ago. “Irish consumers may be detecting at least tentative signs of a slowdown in living cost inflation of late,” the survey’s authors said in a statement. However, the “still downbeat tone of sentiment suggests consumers view this as some degree of easing in current pressures rather than signalling any clear gains in household spending power,” they added.

Ireland’s Credit Union Consumer Sentiment Index edged up to 61.2 in December 2025 from 61.0 in November, marking the highest reading since September. However, the level remains well below both the 73.9 recorded a year ago and the long-term survey average of 83.6, as concerns over living costs continued to dampen confidence despite the economy’s strong growth. Consumer confidence has barely moved from April’s two-year low of 58.7 amid concerns over new US tariffs. By contrast, consumer morale in the UK and the euro area has improved after also plunging in April on trade-related concerns. “The past year has seen a broadly based downgrade of Irish consumers’ thinking in relation to economic conditions and their own financial circumstances,” the survey’s authors wrote. “Given the importance of the US to the Irish economy, it might be expected that trade concerns would weigh heavily on the thinking of Irish consumers.” Ireland’s economy grew 4.1% yoy in the first nine months of 2025.

Ireland’s Credit Union Consumer Sentiment Index increased to 61.0 in November 2025 from October’s three-month low of 59.9, amid a slight reduction in economic worries even as household finances remained under pressure. More than half of consumers reported having less money to spend this Christmas and are cutting back on entertainment and presents due to concerns that household financial pressures could increase further. The decline in consumption came in response to a continued rise in food and energy costs heading into the festive period. Economist Austin Hughes said sentiment improved as reduced nervousness about the economic outlook and a seasonal uptick in spending plans more than outweighed cost-of-living concerns. However, the latest reading is far from the 74.1 recorded in November 2024 and even further below the nearly 30-year survey average of 83.7. The figure has barely moved from April’s two-year low of 58.7, weighed down by concerns over US tariffs.