Irish consumer sentiment rose to its highest level in two and a half years in July as the price squeeze on consumers eased and “the ongoing resilience of the Irish economy prompted an improvement in spending plans”, the latest Credit Union consumer sentiment survey has shown.
The Credit Union’s barometer rose to 74.9 in July, up from 70.5, marking the second monthly increase in a row after successive monthly declines between February and May.
The sentiment survey reading for July 2024 suggests that the fear and financial strains of Irish consumers have eased significantly, the report said.
“With the July sentiment reading still lying slightly below the survey’s long-term average, this month’s results hint at an Irish consumer who is still cautious but also one who may be contemplating possibilities and concentrating less on downside risks to the economy and household finances that have dominated consumer thinking in recent years,” the report’s author Austin Hughes said.
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He noted that both macro elements of the sentiment survey improved in July, with a slightly larger gain regarding the general economic outlook than in relation to jobs.
“The more muted improvement in thinking on the 12-month outlook for household finances suggests no wild expectation of a large scale giveaway budget in spite of numerous references to such a prospect in the media through the survey period,” Mr Hughes said.
The Irish report coincided with an improvement in euro area consumer confidence again reflecting some easing in cost-of-living pressures and a resilient jobs market in Europe.
“At the margin, a feelgood factor associated with the Euro 2024 football finals may also have lifted the mood among European consumers, particularly as there was a strong showing by the larger European countries,” Mr Hughes said.
Consumer sentiment in the US meanwhile slipped on the back of ongoing inflation concerns.
David Malone, chief executive of the Irish League of Credit Unions said: ‘’The further increase in consumer confidence in July holds out the prospect of notably healthier economic conditions for Irish households over the balance of the year.”
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