Consumer sentiment slips in July amid concern over cost pressures and tariff threats, survey shows
The survey showed after a slight improvement across May and June, Irish consumer confidence slipped back this month towards the level seen in April, when tariffs announcement by US president Donald Trump prompted a deterioration.
During July, the consumer sentiment index recorded a reading of 59.1, down from the 62.5 figure reported for June. The reading of 58.7 in April represented a two-year low.
The July reading is well below the 70.5 recorded during the same month last year, and the long term average of 83.9.
The Credit Union Irish Consumer Sentiment Survey is a monthly survey of a nationally representative sample of 1,000 adults conducted by Core Research. The analysis for the sentiment was written by economist Austin Hughes.
Earlier this month, Mr Trump threatened to impose 30% tariffs on imports from the EU from August 1 if a deal is not reached. This is higher than the 20% he initially proposed on April 2, before he backtracked and lowered it to 10%.
On Thursday morning, EU member states voted to approve counter-tariffs on €93bn on US goods in case a deal is not reached, potentially increasing prices here in Ireland.
'At current levels, the tone of consumer sentiment on the Irish economy is altogether more negative than that implicit in a range of recent forecasts for the Irish economy,' Mr Hughes said.
'While this doesn't mean Irish consumers envisage an imminent economic collapse, it does suggest very elevated fear and uncertainty, coupled with a strong sense that economic conditions could deteriorate markedly through the next 12 months.'
'It could also suggest that many consumers don't feel their own financial circumstances are as robust as the economy as a whole.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
an hour ago
- Irish Times
The Irish Times view on Poland's new president: a thorn in the side of the government
There's presidencies, and there's presidencies. Irish parties mulling over their choices to succeed Michael D Higgins will be taking some comfort from the fact that their successful pick will not be assuming a Trump-like, seemingly omnipotent presidency, shaping their agenda, nor indeed, the half-way house that is Poland's top office. Karol Nawrocki, conservative historian, amateur boxer, and supporter of Donald Trump, who was sworn in on Wednesday, is neither a symbolic figurehead nor an agenda setter. However, his powers of veto and policy prerogatives ensure that he will be a major thorn in the side of Poland' s centrist Europhile government. Backed by nationalist opposition party Law and Justice (PiS), Nawrocki 's shock, wafer-thin, majority in June's election dealt a particular blow to prime minister Donald Tusk's hopes to undo the PiS's legacy of attacks on judicial independence and to improve the country's relationship with fellow EU member states and Ukraine, whose Nato membership the new president can block. Poland is now bracing for a continuation of the deadlock seen under nationalist outgoing president, Andrzej Duda. At his inauguration on Wednesday Nawrocki warned that he is ready to block appointments of judges he does not see as fit to perform their roles, and will create a council dedicated to repairing Poland's constitutional order. He concluded, shouting the Maga-like 'May God bless Poland, long live Poland.' READ MORE Like Trump, Nawrocki brings a rich vein of controversy to his new post. He is the subjects of ongoing criminal probes, and like Trump, will be protected during his presidential term from prosecution. Controversies he has been involved in range from his admitted part in a brawl between football hooligans in 2009, allegations of involvement with gangsters and claims he cheated an old man out of his apartment. He is a political newcomer little known to the public before PiS threw its weight behind him. A bumpy road ahead is likely.
The Irish Sun
2 hours ago
- The Irish Sun
Revenue write to almost 70k Irish pensioners over incorrect tax payments amid fears envelope ‘will cause lot of concern'
Revenue is clamping down on pensioners who have owed tax since 2022 TAX TIME Revenue write to almost 70k Irish pensioners over incorrect tax payments amid fears envelope 'will cause lot of concern' REVENUE commissioners have written to almost 70,000 pensioners over concerns relating to incorrect tax payments. These retirees make up a large portion of the 260,000 individuals who Revenue claims may have been incorrectly taxed for the year 2022. 3 The Revenue commission says this campaign is not aimed explicitly at pensioners Credit: Getty Images - Getty 3 According to Revenue, over 260,000 taxpayers may have been incorrectly taxed for the year 2022 Credit: Getty Images - Getty Despite this action, the Revenue Commission says it has not launched a campaign aimed explicitly at pensioners. The letters outline steps taxpayers should take to file a correct end-of-year statement and income tax return. According to RTE, the correspondence says that the vast majority of people, including pensioners, pay the right amount of tax automatically. However, other income sources, such as "a Department of Social Protection payment or private income, Revenue may need to adjust tax credits to reflect that". Notably, social welfare payments are not taxed before they are paid out; as a result, many recipients owe tax on these payments without knowing it. For example, if a person receives a social welfare payment, such as the State pension, but has another source of income, such as a part-time job or private pension, they may owe tax on that payment. Revenue says pensioners whose sole income comes from the state pension will not be effected. Despite the presence of these letters, Revenue says that "the letters are not a demand, but part of our regular efforts to help people check if they have paid the right amount of tax, or if they are due a refund". And that where there is underpayment taxpayers will not be required to make an immediate payment. Instead, any owed funds "will be collected through a reduction of tax credits in future years". "MORE HUMANE APPROACH" CEO of Irish Rural Link Seamus Boland said these Revenue letters will cause much concern. Referencing the time revenue sent letters sent to around 115,000 pensioners in 2012, he said: "I think at that stage there was an apology made for the way people were being treated. "Hopefully this letter is not as brutal as that one was, I'm hoping it's a little softer in terms of people who have overpaid and there will be a category of people who have underpaid as well." He added: "there's lots of pensioners in this category who are going to be affected one way or the other." But that he hopes the commission might adopt a "more humane approach" this time. Revenue has yet to disclose the sums of money involved.
Irish Independent
2 hours ago
- Irish Independent
Saoirse Hanley: The new Penneys app may change the way you shop – but there is a snag
The app is already top of the Irish shopping charts Penneys (or Primark, as it's known elsewhere) is a long-standing part of Irish culture: after all, the very first store opened on Dublin's Mary Street. It's in our DNA. It's distinct from other shops by virtue of price, certainly, but also because it has never moved its business online. Those who want to say 'thanks, I got it in Penneys' to someone who compliments their outfit get to do so with the smugness of someone who battled the masses to procure said fashion in-store.
