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Irish Independent
4 days ago
- Business
- Irish Independent
Shoppers reeling from ‘sticker-price shock' as inflation eats away at consumer confidence
Rising living costs are the most pressing issue for households and have put a dent in consumer confidence, the Credit Union Consumer Sentiment Index for this month indicates. Almost four in 10 people said the most pressing issue facing them is the cost of living. One in five said the shortage of housing was a major issue for them, and 8pc cited tariffs and trade threats as a worry. People under the age of 55, who typically have mortgages and high childcare costs, are more worried about the cost of living than older consumers. Food-price inflation has reached its fastest pace in a year-and-a-half. Economist Austin Hughes, who oversees the compiling of the index, said the annualised rate of food-price inflation is 7.6pc. 'Although few consumers will consciously make annualised calculations, these results likely chime with some experience of 'sticker-price shock' when shopping, resulting in a clearly faster drain of spending power of late,' he said. The latest figures show beef prices are up 22pc in the past year, butter is up 19pc, milk 12pc and chocolate 17.5pc. Mr Hughes said those figures show grocery bills are rising at a faster pace than the overall inflation figure suggests. The threat of tariffs has increased nervousness about the country's economic prospects 'Concerns around living costs were likely amplified by a series of government comments indicating that the upcoming budget would not contain a cost-of-living package,' he said. 'The sentiment survey suggests that a fiscal stance that ignores current pressures on household finances is likely to prove far less sustainable than one that implements fair and focused measures to support living standards.' The threat of tariffs on EU exports to the US has increased nervousness about the country's economic prospects. Mr Hughes said worries about grocery costs were the main reason for the drop in consumer confidence. 'Accelerating food prices and indications that the upcoming budget wouldn't contain offsetting measures are likely key factors,' he said. After a slight improvement through May and June, consumer confidence has slipped back to the level reported in April, when the threat of a tariff-driven trade war prompted a sharp deterioration. This month's Credit Union Consumer Sentiment Survey, in partnership with Core Research, has an index reading of 59.1, down from the 62.5 reported for May. The decline in recent weeks brings Irish consumer sentiment to a two-year low. The parts of the index that relate to household finances and spending both showed month-on-month declines, Mr Hughes said.
Yahoo
4 days ago
- Business
- Yahoo
Irish consumer sentiment drops to near two-year low in July
DUBLIN (Reuters) -Irish consumer sentiment fell to a near two-year low in July as concerns about the cost of living and tariffs on European Union exports to the U.S. weighed, a survey showed on Friday. The Credit Union Consumer Sentiment Survey slipped to 59.1 in July from 62.5 in June, nearing April's two-year low of 58.7. The reading is below the 70.5 level posted in July 2024 and far lower than the long-term survey average of 83.9. The drop in Irish sentiment contrasted with improvements elsewhere. Consumer sentiment in the U.S. returned to its best level for five months in July, while consumer confidence in the euro zone also increased slightly this month. The components in the Irish survey that focused on household finances and spending were notably weaker, which its authors said likely reflects cost-of-living concerns and government hints that there will be fewer offsetting measures in October's budget. The threat of a 30% tariff on EU exports to the U.S. also weighed, despite positive domestic economic data, including robust tax revenues and job creation. Ireland is among the countries most exposed to President Donald Trump's sweeping economic policies, with a significant proportion of employment, tax receipts and exports dependent on a cluster of mainly tech and pharmaceutical U.S. multinational companies. Sign in to access your portfolio
Irish Examiner
4 days ago
- Business
- Irish Examiner
Consumer sentiment slips in July amid concern over cost pressures and tariff threats, survey shows
Irish consumer sentiment has slipped backwards during July, amid renewed concerns over cost pressures and the threat of higher tariffs being implemented by the US, the latest Credit Union Consumer Sentiment 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.'
Reuters
4 days ago
- Business
- Reuters
Irish consumer sentiment drops to near two-year low in July
DUBLIN, July 25 (Reuters) - Irish consumer sentiment fell to a near two-year low in July as concerns about the cost of living and tariffs on European Union exports to the U.S. weighed, a survey showed on Friday. The Credit Union Consumer Sentiment Survey slipped to 59.1 in July from 62.5 in June, nearing April's two-year low of 58.7. The reading is below the 70.5 level posted in July 2024 and far lower than the long-term survey average of 83.9. The drop in Irish sentiment contrasted with improvements elsewhere. Consumer sentiment in the U.S. returned to its best level for five months in July, while consumer confidence in the euro zone also increased slightly this month. The components in the Irish survey that focused on household finances and spending were notably weaker, which its authors said likely reflects cost-of-living concerns and government hints that there will be fewer offsetting measures in October's budget. The threat of a 30% tariff on EU exports to the U.S. also weighed, despite positive domestic economic data, including robust tax revenues and job creation. Ireland is among the countries most exposed to President Donald Trump's sweeping economic policies, with a significant proportion of employment, tax receipts and exports dependent on a cluster of mainly tech and pharmaceutical U.S. multinational companies.
Irish Independent
23-05-2025
- Business
- Irish Independent
Revealed: the number of people who wouldn't cope if they got a sudden bill for €1,000
The findings in a recent survey have prompted a leading economist to support calls for another cost-of-living package in this year's budget. Researchers asked people if they could cope financially if they were faced with an emergency costing €1,000. One in seven (14pc) consumers say they would be unable to cope with such a financial emergency, a special question asked as part of the Credit Union Consumer Sentiment Survey for May shows. Independent economist Austin Hughes, who analyses the survey, said the results suggest a continuing strain on household finances from the cost-of-living crisis. He said household spending power has declined and the findings support calls for another cost-of-living package in this year's budget. 'From a policy perspective, these survey findings run counter to the widely heard argument that lower inflation and rising aggregate incomes mean further fiscal supports are no longer required,' he said. The Government has ruled out an across-the-board package to support households in October's budget, but hinted at measures targeted at the most vulnerable. Central Statistics Office figures show grocery prices are up an estimated 36pc in the last four years. 'While inflation has eased over the past year, it has started to pick up again in recent months and, far more importantly, consumer prices have not retraced any of the sharp increases of recent years,' Mr Hughes said. 'In these circumstances, it is not entirely surprising that significant numbers of Irish consumers say they would struggle to cope with a financial emergency at present.' The Credit Union survey, in partnership with Core Research, shows financial circumstances and conditions continue to vary markedly across Irish households. Responses show a third of consumers would be able to call on savings to deal with an unexpected financial emergency. One in five would resort to using their income to fund the outlay. ADVERTISEMENT Mr Hughes said survey findings indicate just over half of Irish consumers could be regarded as financially 'comfortable' at present. About one-in-four consumers might be seen as 'clinging on'' financially. He said around one in five could be described as 'coping' in the current circumstances. However, this share who are coping has declined as consumer circumstances diverge. 'The trend in recent years is for a small increase in the numbers clinging on. There is a slight increase in the comfortable, and a drop in the number of those who are coping,' Mr Hughes said. He said this raised a question about whether middle-income people have been squeezed too much. The economist said the evidence at home and abroad is that economic and social fracture is damaging and destabilising.
