Consumer Mindset Report - March 2023
This report is informed by the Credit Union Consumer Sentiment Index,
in partnership with Core Research.
WAITING, ANTICIPATING!
Is there an end in sight?
This is the key question occupying peoples’ minds this month. It is not just about fluctuating inflation rates, it is the increasing mortgage rates, housing and eviction bans, the hard and fast lay-offs in the tech sectors (and other sectors announced more recently). It is the poor weather of late, the exhaustion that some are experiencing as the pace of life intensifies again. The combination of these things have contributed to an increase in negative emotions in March. The percentage of people claiming they experienced stress or worry is up significantly since February.
After several months' growth in consumer confidence, the Credit Union Consumer Sentiment Index, in partnership with Core Research, has fallen marginally in March to 53.9, the weakest reading in 2023.
Boiling frog syndrome
Life is unpredictable and uncertain for many right now. We have become primed to expect and plan for negative news. We have reached a point where many people cannot make any further changes to their budgeting or spending patterns, and many feeling that they lack control or agency over the course of their lives. This is evident with just 7% reporting feeling ‘very optimistic’ that Ireland will overcome the cost-of-living crisis, and just 7% say they are not feeling the effects of the cost-of-living crisis.
Considered Consumption
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.
Despite many people being cash-strapped, people want to reassert a level of control in their lives and enjoy experiences either by themselves or with others. People are prioritising what is important to them and there is a significant proportion of people who have already made firms plans for Spring and Summer activities.
Pursuits that don’t cost money are high on the agenda this year – reading, heading to the beach, going for a hike. But so too are the activities which people say they value a lot, such as travelling abroad or taking a break in Ireland. Whatever the chosen activity or the associated budget, the firm plans that have been made point to the fact that people are keenly aware of the benefits of taking a break or trying something new to improve their wellbeing.
High Hopes for the Future
We asked people to look back and to look forward to describe Ireland in 2003 and what they’d like to see in 2043. People want to see a strengthened economy, becoming (and being accepting of) a more diverse and inclusive country, with citizens regaining a level of control over the course of their lives, and improved emotional health.
