Consumer Mindset - August 2023
This report is informed by the Credit Union Consumer Sentiment Index,
in partnership with Core Research.
POSITIVE EMOTIONS CONTINUE TO RISE
Despite the poor weather over the past few months, it is clear many of the public are continuing to enjoy summer this year. The percent of people experiencing positive emotions like happiness increased from 38% last August to 48% and enjoyment increased from 31% to 38% this summer.
However, as Summer comes to an end, we may be seeing the beginning of stress (35%) creeping back into people's lives as this emotion also saw an increase this month.
BUT SENTIMENT FALLS AND CONCERN RISES
As stress begins to creep back into people’s lives, we have seen a fall in the Sentiment Index to 62.2 this month and a significant increase in concern over the cost-of-living situation in Ireland, which has risen from 52% to 57%.
In August, there were news stories associated with rising interest rates, job losses in Accenture and Salesforce, as well as record numbers of homelessness, increases in the price of a pint and some streaming subscriptions. The public are also aware of a return to further costs in the Autumn and Winter months which is having a negative impact on sentiment and future concerns.
CUTTING BACK AND BEING HEALTHY
With the increase in concern and drop in sentiment in August, it is unsurprising that most people are planning to cut back on spending (52%) in the next two months.
This, coupled with the fact that approval for how different sectors are handling the cost-of-living situation in Ireland is down across the board, illustrates that the public are bracing for what could be a more difficult Autumn and Winter period.
This is aligned to the survey results that highlight how many people (29%) want to eat in more to save money and focus on their health by eating healthier (51%) and getting more sleep (46%) which can be difficult during the Summer months.
BACK TO REALITY
While a rise in positive emotions like happiness and enjoyment continue to illustrate that the public are enjoying their holidays or time off for summer, they are also aware that there will be a return to further costs over the next six months. August 2023 also saw approval for how different sectors are handling the cost-of-living situation in Ireland fall across the board.
It will be important for brands to demonstrate and reassure customers that they are doing all they can to help them navigate the cost-of-living crisis into the Autumn and Winter months.
