Irish consumer sentiment fell to a three-month low in October as consumers fretted about rising living costs and reduced fiscal supports.
The latest Credit Union consumer sentiment index fell to 59.9 this month, down from 61.7 in September and just above the 59.1 figure reported for July when concerns about the imposition of US tariffs clouded the economic outlook.
The fall in sentiment coincides with elevated grocery price inflation – currently at 5 per cent,figures from the Central Statistics Office show– which is threatening to strain household budgets over Christmas.
“The monthly change in sentiment might be regarded as relatively modest given that Budget 2026 measures are expected to drain spending power for the majority of consumers and there has been a renewed and high-profile pickup in inflation of late,” the report’s author Austin Hughes said.
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However, he noted expectations had been managed by “a clear signalling of the intention” not to provide a cost-of-living package for several months.
“It is also the case that sentiment is materially lower than a year ago 2024, with Irish consumers now notably more negative about their household finances than in the wake of the previous budget,” Mr Hughes said.
The latest survey suggested Irish “micro worries” – those related to household finances – outweighed the largely unchanged “macro picture”.
While four of the five elements of the survey, collated in partnership with Core Research, were lower in October, the overall weakening was concentrated in those elements focused on household finances, the report said.
“Although there were no dramatic global developments through the survey period, repeated official references to downside risks facing the Irish economy in the run-up to Budget 2026 may have resonated with consumers in October,” it said.
The current negative assessment of household finances may seem at odds with official data showing average wages rising faster than consumer prices, Mr Hughes said.
However, he noted “average” measures may obscure big differences in current conditions across the spectrum of Irish consumers.
Mr Hughes cited Central Statistics Office data indicating that in 2023, the average disposable income of the top 20 per cent of households in Ireland was €163,000, nearly five times the €35,000 average disposable income of the bottom 20 per cent of households.
David Malone, chief executive of the Irish League of Credit Unions, said: “The October sentiment survey suggests that Irish consumers are growing more concerned about rising living costs in an increasingly uncertain economic climate at present.”
