Consumers in the Republic of Ireland and Northern Ireland expect a weaker economy, less favourable job prospects, and higher inflation over the next five years, a new survey suggests.
The research – undertaken on behalf of credit unions on the island of Ireland – indicates that people are increasingly concerned by issues around tariffs, infrastructure shortfalls, and cost-of-living pressures, which are all weighing on sentiment.
The findings suggest that just over a quarter of consumers in both the Republic (29%) and in the North (27%) expect the economy to be stronger in 2030.
However, according to the survey consumers in the Republic are notably more downbeat now about the medium-term outlook than in previous years, whereas NI consumers are marginally less pessimistic than previously.
Nearly four in ten consumers on the island (37% in ROI, 39% in NI) believe the jobs market will be weaker in five years’ time.
The credit union research also suggests that although consumers are concerned about what sort of economic environment they may face in 2030, slightly more consumers in the Republic think their household incomes will be higher in 2030 than think their household incomes will drop (34% v 29%).
While it notes consumers in Northern Ireland are marginally more positive about the outlook for their household incomes in 2030 (31% expecting higher incomes v 23% expecting a drop).
On house prices, it says 71% of consumers in the Republic and 66% of consumers in Northern Ireland expect them to be higher in five years’ time.
Commenting on the findings, research author and Economist Austin Hughes said: “With the threat of a trade war highlighting common global concerns and improving domestic activity and incomes of late giving some shared sense of more positive developments, the sentiment survey suggests there are good grounds for more similarities than differences in the views of consumers in the Republic of Ireland and Northern Ireland on their economic and financial circumstances.”
Chief Executive of the Irish League of Credit Unions David Malone said “while consumers in both the Republic of Ireland and Northern Ireland are understandably concerned about a troubling global economic outlook, the expectation of a modest improvement of incomes and higher house prices suggests many consumers see a future of opportunity as well as challenge.
“Whatever their future may hold, consumers can face it with more confidence with the support of their local credit union.”
The Credit Union Irish Consumer Sentiment Survey is a monthly survey of a nationally representative sample of 1,000 adults.
The Northern Ireland Credit Union Consumer Sentiment Survey is a quarterly survey of a representative sample of 350 adults.
Core Research undertake the survey administration and data collection for both surveys.
This survey was carried out in February, before US President Donald Trump’s sweeping tariff announcements on 2 April.
Article Source – Consumers expect weaker economy over next five years – RTE
