Consumer sentiment remained broadly unchanged in September when compared to the previous month.
The Credit Union Consumer Sentiment Index found that while recent months saw an obvious improvement from the low levels of the previous two years, the upward momentum has stalled.
“Irish consumers feel things are not getting notably worse, but there is little sense that in the past couple of months Irish consumers believe things are clearly continuing to get better,” said Austin Hughes, the economist who compiles the index.
“The sense of being in an economic ‘limbo’ at present is also hinted at in the September index at 71.9 falling some distance short of the long-term survey average of 84.4.”
Mr Hughes described this state as ‘watch, wait and worry’ mode.
Month on month gains were recorded in three of the five main elements of the survey, with the other two declining.
Consumers’ view of the 12 month outlook for the economy improved marginally.
They were also a little less worried about the outlook for activity, but were somewhat more concerned about the prospects for employment.
Consumers’ assessments of how their household finances had developed over the past 12 months improved a very small amount.
“If we contrast the September sentiment readings for Ireland and the UK, it may well be that very different expectations around upcoming Budgets in the two economies play a significant role in shaping consumer thinking on the prospects for their personal finances,” said Mr Hughes.
But he added that a second small monthly decline in purchasing plans in the September survey, suggests consumers do not see Budget 2025 as providing them with a marked improvement in living standards.
The survey, which is compiled in association with Core Research, asked a special question about respondents three main priorities for next Tuesday’s budget.
It found that the main focus of consumers in terms of priority Budget measures is on infrastructure, particularly in relation to health, which was referenced by 55% of people.
However, housing was also a priority cited by 47% of consumers compared to 39% a year ago.
Transport infrastructure was a priority for 15%.
Tax concessions were referenced by 26% while social welfare rate increases were mentioned by 19%.
Article Source – Consumer sentiment unchanged in September – RTE
