Irish consumers are nervous about the potential impact of Trump administration policies on the Republic’s economy and their household finances, according to the latest Credit Union Irish Consumer Sentiment survey, as the mood among households remained subdued in February.
Based on a survey of some 1,000 people, the headline index for the month was 74.8, essentially unchanged from January when a typical post-Christmas bump in consumer sentiment largely failed to materialise.
Economist Austin Hughes, who authored the report, said the February reading was significantly lower than the long-term series average of 84.2.
Consumer sentiment has essentially been unchanged since October 2024. Despite receiving a boost from easing inflation, the mood among households began to dip in the final months of 2024 against a backdrop of an “altogether more threatening policy stance from an incoming US administration”, Mr Hughes said.
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‘’It is notable that the February sentiment survey suggests Irish consumers are bracing themselves for an uncertain economic landscape in 2025,” said David Malone, chief executive of the Irish League of Credit Unions.
Of particular concern to consumers here is the likely impact of any significant changes to US policy on the Irish economy and their household finances, according to the report.
Two-thirds of survey respondents said potential changes to US policy will affect the Republic’s economy negatively and one in three believe that impact will be substantial.
Mr Hughes said negative sentiment about the shift in US policy direction is widely held across age groups but is particularly notable among those over the age of 45.
Just 11 per cent of survey respondents believe the second Trump administration’s policies could be good for the Republic’s economy, with just 3 per cent of that cohort believe the effect could be substantial.
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Half of consumers, meanwhile, are nervous that trade and tax policy shifts in the US could impact their household finances.
Some 11 per cent of these consumers believe the effect could be substantially negative, suggesting Irish households “consumers expect considerable indirect or spillover effects on their household finances from possible shifts in US policy”, Mr Hughes said.
“This could reflect an expectation that US policy changes could spark a generalised slowdown in economic activity and/or negatively impact Irish tax revenues in a manner that might prompt a tougher fiscal stance.”
Tánaiste and Minister for Foreign Affairs Simon Harris on Wednesday chaired the first meeting of the Consultative Group on International Trade, the expert group the Government established earlier this month to advise on trade matters.
In the US, consumer sentiment plummeted to an eight-month low this month, according to a survey published on Wednesday, amid growing concern about the negative economic impact of the policies of President Donald Trump’s administration.
