• Consumer confidence hits nine month high-a temporary rise?

• Seasonal switch-off from economic news boosts January reading

• Easing inflation and talk of grocery price wars also supportive

• January sentiment gains also seen in US, UK and Euro area.

• Special question focusses on gender, age and financial circumstances-based differences in Irish consumer sentiment

  • Sentiment of Irish female consumers is weaker and falls further over past twelve months than that of males

  • Sentiment among over 45’s weakens more than among younger consumers on worries about economy
    Sentiment declines similar among the comfortable and those struggling but causes differ

Speaking on the release of the January 2026 data and analysis, David Malone, CEO of the Irish League of Credit Unions noted; "While the improvement in Irish consumer sentiment in January may be modest and potentially temporary, it is nonetheless encouraging. In particular, the uptick in consumers’ assessments of their own personal financial circumstances is notable. However, it remains unclear whether this reflects short-term New Year optimism or the beginning of a more sustained improvement".

Summary

As is usually the case, Irish consumer sentiment edged higher in January. Our sense is that this largely reflects a seasonal switch-off from economic and financial news over the Christmas and new year period, coupled with some new year optimism that the turbulence of the past twelve months may not be repeated in 2026.

However, if history is any guide, the February sentiment reading tends to signal a renewed focus on challenges for household finances and the broader economic environment. Frequently, this leads to a correction that brings the index lower.
The monthly uptick in consumer sentiment was broadly based but owed much to an improvement in Irish consumers assessment of their personal financial circumstances.
Irish consumers may be detecting at least tentative signs of a slowdown in living cost inflation of late.  The still downbeat tone of sentiment suggests consumers view this as some degree of easing in current pressures rather than signalling any clear gains in household spending power. The current survey reading is still at a relatively weak level historically, suggesting personal finances remain under strain for many households.
In the same vein, largely unchanged buying plans in January, point towards a cautious and concerned but not completely negative Irish consumer in early 2026.