Irish consumer confidence fell to its lowest level since December 2022 this month as continuing volatility in the Middle East translated into further increases in retail fuel costs, according to a survey from the Irish League of Credit Unions.
The report’s author, Austin Hughes, said the fall in April reinforced the weakening in consumer sentiment seen in March, without notably amplifying it.
“In a rapidly shifting environment, Irish consumers did not make any radical adjustment of an already negative view of their economic and financial prospects,” said Hughes.
While all elements of the Irish sentiment survey focused on household finances were notably weak in April, the largest monthly decline was in relation to the outlook for jobs.
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The survey, which was carried out in partnership with Core Research, shows an index reading of 53.3 in April, moderately down on the 56.7 reading for March, and the April 2025 reading of 58.7.
Reflecting the pronounced weakness in Irish consumer sentiment of late, the drop in April was sufficient to leave consumer confidence at its lowest level since December 2022. It is also well below the long-term survey average of 83.3.
All three elements of the survey that relate to household finances were weaker in April than in March.
Hughes said a somewhat larger decline in April than in March in consumers’ assessments of how their household finances had evolved over the past 12 months “likely owed much to the significant recent energy-centred rise in inflation”.
“As we noted a month ago, the latest jump in living costs comes on top of a period of falling living standards of late,” he said. “The average Irish consumer’s disposable income is now estimated to have been 2.4 per cent lower in the final quarter of 2025 than a year earlier.
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“Sharply contrasting fiscal measures over the past two budgets mean that decline might have become even larger in the first three months of 2026.”
Some 54 per cent of consumers said higher energy prices would have a “significant impact” on their household finances.
Consumers already having difficulty making ends meet were about 2½ times more likely to give this response than those saying they were managing without difficulty. Roughly three in 10 of the latter also indicated that higher energy prices would have a significant impact on them.
“Survey responses suggest it might be difficult for Irish consumers to markedly or quickly reduce their energy usage in response to higher energy costs,” said Hughes.
Just 32 per cent said they would reduce their energy usage “a lot”. This response was slightly more common among consumers outside Dublin. Those struggling to make ends meet were twice as likely to give this response as others.
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Almost one in five consumers said they would not be able to alter their energy use.
The survey also asked consumers if higher energy prices would impact their outlays in other areas of household spending.
“Responses suggest a fairly significant negative hit to consumer spending generally from higher energy prices, perhaps reflecting difficulties in reducing energy usage in the short term,” Hughes added.
Nine in 10 Irish consumers said they would need to cut back spending in other areas if energy prices remain elevated. Two in five of these said they would need to make substantial cutbacks to other areas of spending.
