Consumer sentiment slips in July amid concern over cost pressures and tariff threats, survey shows
The survey showed after a slight improvement across May and June, Irish consumer confidence slipped back this month towards the level seen in April, when tariffs announcement by US president Donald Trump prompted a deterioration.
During July, the consumer sentiment index recorded a reading of 59.1, down from the 62.5 figure reported for June. The reading of 58.7 in April represented a two-year low.
The July reading is well below the 70.5 recorded during the same month last year, and the long term average of 83.9.
The Credit Union Irish Consumer Sentiment Survey is a monthly survey of a nationally representative sample of 1,000 adults conducted by Core Research. The analysis for the sentiment was written by economist Austin Hughes.
Earlier this month, Mr Trump threatened to impose 30% tariffs on imports from the EU from August 1 if a deal is not reached. This is higher than the 20% he initially proposed on April 2, before he backtracked and lowered it to 10%.
On Thursday morning, EU member states voted to approve counter-tariffs on €93bn on US goods in case a deal is not reached, potentially increasing prices here in Ireland.
'At current levels, the tone of consumer sentiment on the Irish economy is altogether more negative than that implicit in a range of recent forecasts for the Irish economy,' Mr Hughes said.
'While this doesn't mean Irish consumers envisage an imminent economic collapse, it does suggest very elevated fear and uncertainty, coupled with a strong sense that economic conditions could deteriorate markedly through the next 12 months.'
'It could also suggest that many consumers don't feel their own financial circumstances are as robust as the economy as a whole.'
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