Irish consumers turned nervous in September, with consumer sentiment falling to a four-month low as renewed fears over increasing energy prices and signs of a cooling jobs market weighed on the mood.
But the Credit Union Consumer Sentiment Survey found consumers were not dramatically more negative, with the decline seen as “marginal”.
The headline consumer sentiment index fell to 61.1. The decline reversed the increase that was recorded in the previous month, when it stood at 63.2, and is below the below the long-term survey average of 83.0 and the most recent 10-year average of 76.1.
Households have been facing increased energy costs due to the ongoing war between the US and Iran, along with rising interest rates and increases in health insurance.
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That has led to a more negative outlook on household finances over the past year, and how they might develop in the next 12 months.
“The drop in consumer sentiment in September is not at all surprising, with worrisome increases in global energy prices of late emphasising the strains many Irish households will face in keeping their homes bright and warm through the winter months ahead,” said David Malone, chief of the Irish League of Credit Unions.
Attention next month will turn to the budget, with the top priorities for consumers including improvements in healthcare, help with living costs and measures to ease the housing shortfall and tax burden. Half of those surveyed said they did not expect to see an improvement in their standard of living after the budget.
