Irish consumer confidence improves as public adapt to global instability
The latest
Credit Union
barometer saw its first back-to-back improvement since July last year as the consumer sentiment index rose from 60.8 to 62.5 from May to June.
The report said the large gap since the most recent back-to-back gain emphasises 'how uncertain and threatening the circumstances facing Irish consumers have been of late, notwithstanding the continued solid performance of the economy through this time.'
The level of consumer confidence, despite the slight increase in the past month, remains well below the reading in June 2024 of 70.5, and well below the long-term survey average of 84.
READ MORE
The survey, which was conducted in partnership with Core Research, was compiled before the 'heightened geopolitical uncertainty related to the escalation in military conflict in the Middle East', the report said. Within this context, the rise in Irish consumer sentiment in June was mirrored in gains in similar measures for the US and UK.
In Ireland, the consumers' assessment of the current economic conditions brightened, and 12-month expectations were resurgent. Falling from a height of 90.1, consumers' evaluations of their personal financial situations in 12 months' time has recovered somewhat from a trough in the low 70s in April and May, in reaction to the announcement of US import tariffs.
People's general economic outlook has brightened also, but consumers have not yet regained their pre-tariff confidence. The report indicated that Irish consumers have become used to the economic instability in the system.
'As uncertainty and a threatening geopolitical landscape are now almost permanent features of the Irish economic landscape, consumers have already adapted their behaviour to these developments in recent years,' the report said.
'So, the threat of a trade war or even the increased threat of military conflict are not altogether radical changes in the landscape.'
Irish consumers are generally in a slightly stronger position in holiday spending power than a year ago, but an increased number of consumers are planning to spend more on holidays this year – 26 per cent – than it stood last year (23 per cent).
At the same time, the level of consumers unable to afford a holiday was little changed at 22 per cent this year. The rate of people planning to spend less on holidays increased from 15 per cent to 17 per cent.
The barometer said the results 'highlight wide variations in financial circumstances across Irish consumers' and indicated a three-tiered financial situation among consumers.
The chief executive of the Irish League of Credit Unions David Malone, said: 'The improvement in consumer sentiment in June, while marginal, is encouraging in that it hints that Irish consumers are adapting to a very challenging environment.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
an hour ago
- Irish Times
Competition regulator to seek High Court ruling on Boylesports evidence
Competition regulators are seeking a ruling from the High Court dealing with evidence seized from bookie Boylesports in an investigation of the Republic's gambling businesses. The Competition and Consumer Protection Commission (CCPC) recently raided the offices of Boylesports, Paddy Power owner Flutter Entertainment and Ladbrokes, among others, seeking evidence for an ongoing investigation into possible price fixing. The commission filed High Court proceedings against Boylesports Enterprise Unlimited Company on Thursday, court records show. 'The case relates to a statutory process initiated by the CCPC under section 33 of the Competition and Consumer Protection Act, 2014,' the regulator confirmed. READ MORE 'This is a procedural matter related to a criminal investigation under our competition law powers. No further comment can be made at this point.' Boylesports did not comment. No date has been set for the hearing. Section 33 of the act bars the commission from taking legally privileged material in an investigation. It must apply to the High Court to decide if information it has acquired is privileged. The commission has taken similar proceedings involving other betting businesses that it is investigating, including Flutter Entertainment and Ladbrokes. Owned by its founder, businessman John Boyle, and run by chief executive Vlad Kaltenieks, Boylesports is one of the top three players in the Irish market. It has a significant British business. CCPC officials and members of An Garda Síochána raided bookies' premises in the Republic in May as part of its ongoing investigation into breaches of competition law. The commission has not commented beyond saying that the raids took place and confirming subsequent High Court proceedings involving three firms. Competition legislation gives the commission significant powers to investigate and gather evidence on suspected breaches of the law, including price fixing. Its latest move against the bookies comes as their business faces the prospect of a new licensing and regulatory regime in the Republic following the passing of a new law last year. The Gambling Regulatory Authority of Ireland will police the licensing system, which will apply to betting shops and casinos as well as online businesses. It will be an offence to operate here without such a permit. Most companies in the industry say the new system is welcome, as it provides certainty and modernises laws that long predate digital betting. Boylesports this week announced plans to open 200 new betting shops across the UK and a sponsorship deal with English Premier League side West Ham United .
Irish Times
an hour ago
- Irish Times
Denis O'Brien says it is time to question ‘conduct' of corporate enforcement chief
Businessman Denis O'Brien has criticised the State's business law watchdog over the years-long Independent News & Media (INM) investigation, saying the time had come to question the 'role and conduct' of Corporate Enforcement Authority (CEA) chief executive Ian Drennan . Mr O'Brien was INM's main shareholder when it was rocked by turmoil over an unlawful breach of company data relating to 19 named individuals, among them journalists and former company officials, some of whom had come into conflict with him. The disruption in INM, Ireland's largest newspaper business, led to its sale in 2019 to Belgian group Mediahuis. That deal crystallised a loss exceeding €450 million for Mr O'Brien on his INM investment. Mr Drennan ran the CEA's predecessor, the Office of the Director of Corporate Enforcement, when it asked the High Court in 2018 to send inspectors into the company. READ MORE In a statement, Mr O'Brien said: 'Mr Drennan's failure to engage in due process and interview all relevant parties before heading to the High Court in 2018 in undue and irrational haste calls into question his continued suitability for the position. 'Mr Drennan's conduct showed little respect for due process, proper procedures or basic objectivity. As a result, he inflicted and facilitated very significant reputational damage for several individuals over six years.' [ Leslie Buckley questions way that corporate enforcer investigated INM saga Opens in new window ] Minister for Enterprise Peter Burke , who has political responsibility for the CEA, had no comment on Mr O'Brien's remarks, citing CEA independence of the Government in its work. Asked whether Mr Burke had confidence in Mr Drennan, his department said: 'Yes. The Minister has confidence in Ian Drennan as the sole appointed member of the CEA.' Mr O'Brien was responding to the CEA decision not to take enforcement action over the data breach. The decision was set out on Thursday in its 2024 annual report. How the wealthy are buying up land to avoid inheritance tax Listen | 22:03 That followed on from a report 12 months ago by court inspectors who found after a six-year investigation that INM affairs were not conducted in breach of the Companies Acts. Still, inspectors Seán Gillane SC and UK solicitor Richard Fleck reported 'technical' breaches of the Data Protection Acts. They also found inside information was disclosed to Mr O'Brien by Leslie Buckley, the long-time ally who represented his interests as INM chairman. Mr O'Brien said: 'Mr Drennan took a deliberate decision not to engage with or interview several parties, including myself, who could have provided him with answers to his questions and saved the State and other parties in excess of €40 million. 'His failure to make any reference to this element of the debacle in the annual report speaks for itself.' There was no response from Mr Drennan's office to Mr O'Brien's statement by the close of business on Friday evening. Mr Buckley, the former INM chairman, had criticised Mr Drennan in similar terms on Thursday. Responding on Friday to Mr Buckley, the CEA said: 'As detailed in the annual report, the application to the High Court in this case followed a lengthy investigation and, despite being robustly resisted by the company, satisfied the High Court that the evidential threshold necessary to warrant the appointment of court-appointed inspectors had been fully met and the court's jurisdiction engaged.'
Irish Times
an hour ago
- Irish Times
Enforcement authority's costly INM probe leaves unanswered questions
Ian Drennan, chief executive of the Corporate Enforcement Authority (CEA) , is facing an onslaught of criticism from businessman Denis O'Brien and his ally Leslie Buckley over the Independent News & Media (INM) saga. O'Brien was formerly INM's main shareholder and Buckley represented his interests as chairman. On Thursday, Drennan said no enforcement action will be taken on foot of a High Court report on INM one year ago. Inspectors found a major data breach in INM, now Mediahuis Ireland, did not violate company law. Enforcement action was never going to follow that. But the CEA waited 12 months to say it. Although the inspection cost the State €5.82 million, O'Brien and Buckley said all-party costs came to €40 million. These are enormous sums. [ Leslie Buckley questions way that corporate enforcer investigated INM saga Opens in new window ] Drennan ran the CEA's predecessor – the Office of the Director of Corporate Enforcement (ODCE) – when it went to the High Court in 2018 seeking an inspection. At issue was alarming evidence of a covert 'data interrogation' on emails relating to 19 people within and outside INM, some of whom had come into conflict with O'Brien. An avalanche of litigation followed. READ MORE But for all the disquiet and concern, court inspectors said it would not be appropriate to 'speculate' on how the 19 names were included. That left the biggest question of all dangling. The INM-19, as the victims became known, are no closer to finding out why they were pulled into the web than at the outset. This remains the most disturbing aspect of the affair. Now the backlash against Drennan has begun. O'Brien has attacked him, as has Buckley. They separately say his original investigation was severely flawed because all parties – themselves included – were not interviewed before he went to court. 'Mr Drennan's conduct showed little respect for due process, proper procedures or basic objectivity,' said O'Brien, questioning his suitability for the CEA role. The CEA chief bet the ranch on this investigation. Now he has quietly closed the file. Does Minister for Enterprise Peter Burke have confidence in Drennan? 'Yes,' said Burke's department. But this has been a costly business for all concerned.
