Irish Consumer Sentiment Slips to Over 3-Year Low

Ireland’s Credit Union Consumer Sentiment Index rose to a four-month high of 62.2 in June 2026 from 59.4 in May, extending its recovery for a second consecutive month as concerns over household finances, the economic outlook, and future conditions eased. The index has rebounded by nine points over the past two months but remained below February’s 65.2 reading and well under its long-term average of 83.2, reflecting lingering uncertainty over a lasting peace in the Middle East and still-elevated retail fuel prices. Four of the five survey components improved, while confidence in the jobs market weakened amid Meta’s planned workforce reductions and growing concerns over AI-related employment risks. Although easing global oil prices and government energy support helped soften inflation concerns, households remained broadly pessimistic about their financial situation, signaling consumers are still cautious despite improving sentiment.

Ireland’s Credit Union Consumer Sentiment Index rose to 59.4 in May 2026 from a forty-month low of 53.3 in April, reversing more than half of the decline recorded over the previous two months as easing energy costs and government support measures improved confidence. The rebound followed a ceasefire in the Middle East that reduced fears of severe economic disruption and helped lower fuel prices, while stronger-than-expected public finances boosted expectations of further support for households and businesses. Still, sentiment remained well below the survey’s long-term average of 83.3, reflecting persistent concerns over living costs and economic uncertainty. A special survey question showed that only 56% of households could cover an unexpected €1,000 expense using savings or income, while around one in four would need to borrow from non-bank lenders, sell assets, or could not cope, underscoring persistent financial strains across Irish households.

Ireland’s Credit Union Consumer Sentiment Index fell to 53.3 in April 2026 from 56.7 in the previous month, marking its lowest level since December 2022 and extending the decline for a second straight month. Still, the 3.4-point drop was far milder than March’s sharp 8.5-point fall, hinting the pace of deterioration is easing. The two-month slide also remains less severe than a year earlier, when U.S. tariff concerns hit sentiment. Survey authors noted Irish consumers are bracing for tougher conditions, but not in outright distress over current finances. Dublin recently trimmed its 2026 growth forecast to 1.5–2.1%, with the outlook hinging on how inflation responds to ongoing Middle East tensions.