Consumer Sentiment Index

Consumer Sentiment Index April 2024

Slight further drop in sentiment suggests no spring in consumers step

• April sees third drop in a row for consumer confidence
• High-profile price increases and layoff announcements dent hopes for better environment for consumers
• Irish consumer sentiment slipping more than elsewhere of late
• Special question suggests holiday spending will be slightly less strained than a year ago
  • 23% of consumers say they can’t afford a holiday (V 27% in 2023)
  • 28% say their holiday spend will be the same as last year
  • 24% say they will spend more on their holiday than last year
  • 15% say their holiday spend will be down on last year

Speaking on the release of the April data and analysis, David Malone, CEO of the Irish League of Credit Unions noted; “The April Credit Union Consumer Sentiment Survey suggests that while conditions are not quite as difficult as they were, many Irish households are still under significant financial pressure and worried about a still uncertain economic outlook. As always, credit unions are on hand to support their members through these difficult times".

Summary

Irish consumer sentiment fell marginally for the third month in a row in April as ongoing price increases and uncertainty about the economic outlook continue to weigh on the mood of consumers.

After a very difficult couple of years, a clear sense that conditions had stopped getting worse and worse prompted a significant improvement in Irish consumer confidence late last year but the modest slippage in sentiment in recent months suggests things are not getting better as fast or as forcefully as many consumers had expected.

An easing in inflation and a still solid Irish economy mean consumers are not nearly as nervous as they were either six or twelve months ago. These developments signal recent changes in consumer circumstances are clearly insufficient to suggest a clear improvement in living standards is underway.

Strains on household spending power remain widespread as evident in a wide range of high-profile price increases in April. In the same vein, this month saw another spate of layoff announcements that increase concerns around job security.

As a result, while consumer confidence no longer suggests fears of a slump, sentiment remains subdued. In turn, this hints that consumer spending will remain sluggish rather than surge.

The first Credit Union Consumer Sentiment Index can be read here