Irish Consumer Morale Weakens Slightly

Ireland’s Credit Union Consumer Sentiment Index rose to 63.2 in August 2026 from July’s 61.6, marking its highest level since February. The latest reading was close to the level recorded before the Middle East conflict. The index stood at 65.2 in February before falling to a 40-month low of 53.3 in April due to a surge in fuel prices amid the ongoing Middle East conflict. However, the index remained well below the long-term survey average of 83.1 and the five-year index average of 64.1, even as the economy has continued to grow strongly. Increases in the August figures came despite ongoing cost-of-living pressures and an uncertain economic outlook. “This suggests this pressure is sustained as well as substantial,” the survey’s authors said.

Ireland’s Credit Union Consumer Sentiment Index declined slightly to 61.6 in July 2026 from June’s four-month high of 62.2, the first decline in three months, driven by persistent cost-of-living worries. The index remained well below the long-term survey average of 83.2 but above the 40-month low of 53.3 recorded in April due to a surge in fuel prices amid the ongoing Middle East conflict. The survey showed that the subindices measuring current conditions, consumer expectations, and the economic outlook all fell slightly. "Concerns about the cost of living continue to outweigh all other economic issues," said Irish League of Credit Unions CEO David Malone. Annual inflation remained elevated at 3.4% in June, driven by rising housing, energy, and education costs, which increased pressure on household budgets.

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.