November consumer sentiment steady but subdued
Irish consumer sentiment was “steady but subdued” in November.
The latest Credit Union Consumer Sentiment Index, in partnership with Core Research, shows an index reading of 74.1 for November, identical to that in October.
Only once previously in the near 29-year history of the sentiment survey has the index been completely unchanged between one month and the next.
“A modest weakening in the economic outlook is likely linked to US election results and concerns over trade and tax revenues,” said report author economist Austin Hughes.
“However, spending plans are up, presumably reflecting Christmas and a Back Friday focus.”
Based on the data, Mr Austin described the attitudes to the Irish economy as a ‘mixed picture’, adding its a good deal better than last year and moving in the right direction.
“I think consumers are a little bit more nervous about an uncertain world economy and what the implications of President Trump’s economic policies might mean for Ireland and the broader global economy, that’s the negative element and that’s holding consumers. back.
“On a more positive note, there’s an improvement in spending plans and I think that reflects the fact that consumers are seeing some slight easing in cost pressures.
“There’s also more of a focus on having a half decent Christmas after what’s been a very difficult few years.”
The global economy has proven a little bit more resilient than people thought, according to Mr Hughes.
He believes consumers in the US have been quite upbeat about the general state of employment, but theyre very worried about the cost of living, with sentiment on the economy up, but sentiment on the cost of living sharply down.
“The price price of consumer staples like eggs, which are up 82% in the US over the last three years are really giving consumers sticker price shock and making them very nervous about the general environment.
“I think there’s a disconnect between an economy that they hear is doing well and their own circumstances where many households are still struggling.”
It appears things have stopped getting worse but they’re not dramatically better, and the survey suggests Irish consumers are watching, waiting ….and still worrying.
It found Christmas spending plans are still overwhelmingly cautious but it suggests 2024 will see less of a ‘cutback Christmas’.
However, only one in ten Irish consumers plan to spend more on Christmas this year than they did last year
According to the research one in ten people do not know how they will pay for Christmas while 6% will rely on support from family and friends.
Consumers outside Dublin, females and those aged between 45 and 54 were groups who were more likely to say they plan to cut back on spending than others.
Analysis of the report indicates that those who say they are having difficulty making ends meet are four times more likely to say they do not know how they will fund Christmas spend this year.
The age group most likely to say they do not know how they will pay for their Christmas outlays are those aged between 45 and 54.
Men were three times more likely to plan higher Christmas spending this year than women.
The survey suggests that significant numbers of Irish consumers either plan to cut back, are relying on family and friends or do not how they will pay for Christmas.
Looking at the broader pictures this indicates that while economic conditions at the ‘macro’ level have clearly improved, it seems that Christmas 2024 will be a time of wonder for some Irish consumers and worry for others.
Article Source – November consumer sentiment steady but subdued – RTE
