Consumer Mindset Report - February 2023
This report is informed by the Credit Union Consumer Sentiment Index,
in partnership with Core Research.
Embracing the joy: 43% feel happy.
Feelings of happiness and enjoyment prevail, seeing significant increases on January, indicating that as a nation, we feel a sense of accomplishment after making it through the winter challenges. Positive events such as the St Brigid's Day holiday and the return of brighter mornings, have contributed to the uplift in the mood of the nation.
The Credit Union Consumer Sentiment Index, in partnership with Core Research, rose from 55.2 in January to 55.6 in February.
“The slight increase in consumer confidence in February suggests no major change in consumer thinking this month. As the sentiment index has fallen in February in 18 of the previous 26 years, likely reflecting post-Christmas bills and dark and cold weather, the marginal pick-up in confidence this month may hint at an underlying improvement that likely comes from some modest easing in concerns around cost-of-living pressures.”
Austin Hughes, Economist
A paltry 9% report feeling ‘very optimistic’ that Ireland will overcome the cost of living crisis.
Hence, economic uncertainty lives on, with the majority remaining vigilant about the future. A major challenge facing the Irish economy, highlighted by the recent number of tech layoffs, is our reliance on foreign investment. While this investment has helped to drive economic growth and create jobs, it also means the Irish economy is vulnerable to changes from these multinational corporations, accentuated recently by Microsoft, Google, and Intel's announcement of job layoffs. This uncertainty contributes to feelings of stress, worry, and anxiety felt by more than one in three people in Ireland wanting a more stable future.
Alongside the earthquake in Turkey and Syria, anti-refugee protests and far-right rallies in Ireland was the top new story engaged with by adults over the past four weeks. This, combined with a new homelessness record, the story that was considered most important to the nation, shows why negative feelings continue to creep in.
Beyond the bricks
Many are also still very concerned about the cost of living situation, with 57% of the Irish population remaining very or extremely concerned.
The cost of renting in Ireland remains a contentious issue, with concerns about affordability and supply. While the Irish Government have introduced various measures to try and address the issue, including the recent rent credit that has alleviated certain challenges, the issue of affordability remains a significant challenge for many renters with 60% of all renters fearing their rent will increase and one-third of the population now stating they know someone close to them impacted by the lack of affordable housing.
Further, 45% of adults believe that the financial position of their household will get worse over the next 12 months, enhancing reasons for concern resulting in 40% continuing back on everything.
Moving to Prioritising What We Value
Despite the continued cautious behaviours of consumers, there is a move away from consumers cutting back in every spending category, and a focus on cutting back on some, while prioritising spend on areas beyond necessities.
After six months of sharpening budgets and reviewing how households spend, 30% of the population are now in a position to state they are prioritising spend on what they value, in key areas such as quality food but also on leisure activities such as holidays.
Springmay be providing glimmers of hope.
