Consumer Mindset - June 2024
This report is informed by the Credit Union Consumer Sentiment Index,
in partnership with Core Research.
There’s no shortage of stories that captured the attention of the Irish population for the month of June. A number of stories generated the highest levels of importance ranging from Ireland recognising the state of Palestine, record-breaking homelessness and the Local and European elections that took place.
Consumers are navigating a political, social and cultural landscape that evolves without much warning, driving feelings of uncertainty for what the long-term future in Ireland may hold. In times like these, consumers will need to see and feel the proactiveness of the policy and decision makers to quell their long-term uncertainty and imbue them with optimism.
CONSUMER CONFIDENCE ON THE RISE
The Credit Union Consumer Sentiment Index, in partnership with Core Research, this June has increased, going from 65.7 last month to 70.5.
There’s a perceived improvement in the economy and affordability. In May, 67% of people said that the Irish economy was getting worse and this has decreased to 61% in June. This is embodied in the ways that people perceive affordability and the outlook that it’s getting worse. The belief that “affording everyday items is getting worse” has experienced a significant decrease from 61% last month to 54% this month. This is also happening with our personal finances as the perception that this is getting worse drops from 53% to 50% this month. This is coinciding with a continual decrease in the concern for the cost-of-living situation in Ireland.
THE IMPORTANCE OF SOCIAL COHESION
Social cohesion has been a focal point across the last number of months, with stories surrounding this topic evoking the most impact. This month, improvements in these perceptions around social cohesion; while Irish society’s response or approach to social issues was seen as getting worse by 70% of people last month, this has decreased further to 63% in June.
LONGING FOR THE 1990s AND 2000s
According to two fifths of people, the 1990s and 2000s are the times we look back on the most fondly. This was a transformative time in Irish society, moving away from traditional, religious values to a society more modern and influenced by globalised forces, with improved infrastructure. These periods were a stomping ground for arts and culture, demonstrating a cultural renaissance. Not to mention there was the economic prosperity brought on by the Celtic Tiger, which yielded the expansion of the middle class in the country. Of those who say life was better in the 1990s and 2000s, more than half say that there was more community back then, reinforcing that craving for social cohesion that some feel is missing today.
THE FUTURE FFELS UNCERTAIN
When we ask consumers to think ahead to the next thirty years, consumers are not completely sure of what lies ahead. One third of people don’t know if life in Ireland in the 2030s will be better or worse than it is now. This uncertainty increases the further ahead we go, rising to nearly half when we think of the 2050s. It is the 18–24-year-olds who are most likely to feel the future is bright compared to all other age cohorts, with almost one in five saying the 2030s will be better than now. This increases to one in four when asked about the 2050s, showcasing that their optimism grows most significantly the further in time we go, a striking contrast to all other ages.
WHAT DOES THIS MEAN FOR BRANDS?
As Irish consumers grow increasingly more uncertain the further, we go into the future, they need dependable brands that scratch their stability itch to foster connection and bolster brand trust. Consumers may become increasingly more uncertain of the outlook for the future the further ahead we look but that doesn’t mean that in the present they aren’t seeking out respite from the ever-changing terrain that they live in.
After all, it’s true that our uncertainty towards the future increases the further we look to it, but there is always a space for optimism in the here and now.
