Consumer confidence falls slightly in August
Consumer confidence dropped slightly in August, according to the latest Credit Union consumer sentiment index.
Concerns about household finances in the months ahead and a renewed nervousness about the economy weighed on consumer thinking, the survey states.
It suggests that the looming seasonal increase in spending pressures is adding to the lower consumer mood.
“The slight drop in sentiment in August chimes with the anxiety facing many parents in relation to back-to-school costs,” said David Malone, CEO of the Irish League of Credit Union.
“It’s likely that consumers also have an eye towards higher energy usage costs in the months ahead as well as extra spending pressures in the lead in to Christmas,” he added.
The index reading of 72.0 for August was down slightly from 74.9 in July.
The August reading marks the first monthly decline since May and follows significant improvements in June and July.
“Importantly, the 2.9-point drop in the sentiment index in August is less than a third of the cumulative gain seen in the previous two months,” said economist Austin Hughes, author of the report.
“As such, it doesn’t suggest a major setback in consumer sentiment.
“Instead, it emphasises that many Irish consumers continue to be under significant financial pressure and risks to the economic outlook remain substantial,” he added.
Mr Hughes said all five elements of the survey weakened month-on-month in August, suggesting a generalised shift in thinking rather than one driven by a specific development during the survey period.
A special question in the survey asks whether, so far, 2024 has been better or worse than Irish consumers expected.
One in five consumers said their household finances were better than they expected at the start of the year, while one in three said they are worse than expected.
Those aged 45-64, those on lower incomes and female respondents were more likely to be disappointed.
Meanwhile, 10% of consumers said their household incomes rose more than expected, while 17% said it has risen less than expected and 42% said their household income hasn’t risen this year.
22% of consumers said their household living costs have risen less than expected or not all this year, while 44% said they have risen more than expected.
Article Source – Consumer confidence falls slightly in August – RTE
