Consumer Mindset Report - December 2022
This report is informed by the Credit Union Consumer Sentiment Index, in partnership with Core Research.
Consumer Sentiment Index rises slightly.
Consumer Confidence will rise this Christmas. As 2022 draws to a close it can be overwhelming to take in all that has happened this year. At the start we were still adhering to COVID-19 restrictions. Since February, the war in Ukraine has been ever present in our lives and as the year progressed the cost-of-living crisis reared its ugly head.
In this last quarter, with the largest Government budget ever seen, there has been a slight upturn in the Credit Union Consumer Sentiment Index, in association with Core Research, rising from 45.3 in November to 48.7 in December. Our recent research has shown that consumers are looking forward to the festive celebrations, but are cautious and considered for 2023.
We have seen in the past few months, with inflation continuing to remain high, households are making more considered choices to make budgets stretch further.
Muted Green Shoots.
This upturn in Consumer Sentiment sits alongside a slight increase in optimism that Ireland can overcome the cost of living crisis and a small decline in those very or extremely concerned about the cost of living. Economists at OECD and ESRI predict a cautious year for Ireland in 2023, but recession can be avoided, albeit at the whim of international economic factors.
Response and Support. Those that have been seen to be responsive to the cost-of-living crisis have experienced increased approval ratings. The public transport sector has gained widespread approval since the introduction of reduced fares and the Government has also seen an upturn in the past few months with new supports. While all sectors have seen positive movement in approval, the Energy sector continues to receive the strongest level of disapproval during these cold winter months.
Mixed Emotions as we move in to 2023.
The impact of the pandemic on our everyday lives over the past two years has made us realise what is most important to us as individuals and as a nation, as our state turns 100. Combined with recent tragedies in Creeslough, the passing of Vicky Phelan, the death of one of our UN Peacekeepers, and daily updates from the war in Ukraine, we are taking a broader set of issues into consideration in our life choices and everyday decisions.
This had led to a mix of emotions and the rise of stress, worry and anxiety and a drop in happiness and hope. Even our sources of entertainment, such as the World Cup in Qatar, is tainted by controversy.
Resilience is needed as we embrace 2023.
