Irish Consumer Sentiment Improves in May

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.

Ireland’s Credit Union Consumer Sentiment Index dropped to 56.7 in March 2026 from 65.2 in February, marking its lowest level in three years as escalating Middle East tensions weighed on economic confidence. The decline was also the biggest monthly drop since April 2025, when US tariff concerns rattled sentiment. “The fall reflects a marked decline in consumer confidence rather than a complete collapse, given the scale of the drop is broadly similar to that seen almost a year ago”, the survey's authors said. Households are becoming more cautious, particularly in spending plans, as concerns over economic fallout and rising energy costs intensify. The reading aligns with broader euro area trends, where consumer confidence fell to its lowest since late 2023. Still, the central bank raised inflation forecasts to 2.9% for 2026 and 2.6% for 2027 due to energy pressures, while expecting only a modest slowdown in growth. The economy expanded by 4.9% in 2025, even as sentiment stayed subdued.