Irish consumer confidence improves as public adapt to global instability
The latest
Credit Union
barometer saw its first back-to-back improvement since July last year as the consumer sentiment index rose from 60.8 to 62.5 from May to June.
The report said the large gap since the most recent back-to-back gain emphasises 'how uncertain and threatening the circumstances facing Irish consumers have been of late, notwithstanding the continued solid performance of the economy through this time.'
The level of consumer confidence, despite the slight increase in the past month, remains well below the reading in June 2024 of 70.5, and well below the long-term survey average of 84.
READ MORE
The survey, which was conducted in partnership with Core Research, was compiled before the 'heightened geopolitical uncertainty related to the escalation in military conflict in the Middle East', the report said. Within this context, the rise in Irish consumer sentiment in June was mirrored in gains in similar measures for the US and UK.
In Ireland, the consumers' assessment of the current economic conditions brightened, and 12-month expectations were resurgent. Falling from a height of 90.1, consumers' evaluations of their personal financial situations in 12 months' time has recovered somewhat from a trough in the low 70s in April and May, in reaction to the announcement of US import tariffs.
People's general economic outlook has brightened also, but consumers have not yet regained their pre-tariff confidence. The report indicated that Irish consumers have become used to the economic instability in the system.
'As uncertainty and a threatening geopolitical landscape are now almost permanent features of the Irish economic landscape, consumers have already adapted their behaviour to these developments in recent years,' the report said.
'So, the threat of a trade war or even the increased threat of military conflict are not altogether radical changes in the landscape.'
Irish consumers are generally in a slightly stronger position in holiday spending power than a year ago, but an increased number of consumers are planning to spend more on holidays this year – 26 per cent – than it stood last year (23 per cent).
At the same time, the level of consumers unable to afford a holiday was little changed at 22 per cent this year. The rate of people planning to spend less on holidays increased from 15 per cent to 17 per cent.
The barometer said the results 'highlight wide variations in financial circumstances across Irish consumers' and indicated a three-tiered financial situation among consumers.
The chief executive of the Irish League of Credit Unions David Malone, said: 'The improvement in consumer sentiment in June, while marginal, is encouraging in that it hints that Irish consumers are adapting to a very challenging environment.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
6 hours ago
- Irish Times
Irish passengers stranded in Canada due to cabin crew strike
Some 200 Air Canada passengers on a flight to Dublin have been stranded at Toronto airport as a result of an impending strike. More than 10,000 Air Canada flight attendants are due to walk off the job as of 7am Irish time on Saturday. The Canadian Union of Public Employees, which represents cabin crew, rejected Air Canada's latest contract offer as inadequate. Among their demands are that cabin crew be paid for the time they are on the ground preparing for flights. Some 98 per cent of flight attendants have voted for strike action READ MORE Consequently, Air Canada has already cancelled 500 flights due to take off, as the planes and crew may be stranded overseas if and when the strike happens. The dispute is over pay and conditions. Air Canada AC800 flight to Dublin was due to take off at 8.40pm local time in Canada and arrive in Dublin at 8.15am on Saturday. Passengers on the flight were sent a message from the carrier to state that their system had looked for flight options on more than 120 carriers and found nothing available. Passenger Miren McDonald at Pearson Airport in Toronto where a strike by Air Canada crew has brought many flights to a halt. Passenger Miren McDonald said she and the other Dublin-bound passengers have been given no offer of accommodation and there is nobody to speak to at the airport. All the passengers have received is a voucher worth CA$15 (€9.28) from Air Canada. Ms McDonald said she feared that she and the other passengers would not be able to leave until the end of next week, as there are few scheduled flights to Ireland from Canada. 'We have been offered no help.'
Irish Times
8 hours ago
- Irish Times
European markets fall back as they await outcome of summit on Ukraine
European shares came off multi-month highs on Friday, as declines in heavyweight tech and financial shares offset gains from some corporate earnings. Meanwhile, investors monitored a crucial summit between US president Donald Trump and his Russian counterpart Vladimir Putin over Ukraine. Investors hope the meeting could pave the way for a resolution of the Ukraine war, which has raged since February 2022. Dublin The Dublin market ended the week on a positive note, closing up half a per cent. Financial stocks were mixed on the day, with AIB and Bank of Ireland both edging lower by almost half a per cent each, while Permanent TSB was flat and insurer FBD gained 2.5 per cent to close at €14.35. READ MORE Food groups Kerry and Glanbia were both marginally lower, with Kerry down 0.13 per cent and Glanbia shedding 0.14 per cent. Insulation specialist Kingspan ended the week 1.7 per cent higher. Travel stocks rose, with Ryanair up 1.7 per cent and closing the day at €26.75. Shares in ferries group Irish Continental gained 1.45 per cent, closing the week at €5.60. London The FTSE 100 fell back after hitting a new all-time high to close lower on Friday. This was amid caution ahead of the US-Russia peace summit, hints of more tariffs and weak US consumer sentiment. The index closed down 38.34 points, 0.4 per cent, at 9,138.90. It had earlier reached an all-time intra-day high of 9,222.07. The FTSE 250 ended down 43.43 points, 0.2 per cent, at 21,758.24, and the AIM All-Share finished 0.86 of a point higher, 0.1 per cent, at 759.80. On the FTSE 100, mining stocks rose despite weak data from China. Anglo American rose 2.1 per cent, Glencore climbed 1.8 per cent and Antofagasta 1.2 per cent on hopes the soft figures will spark action from Chinese authorities. On a quiet day for company news, Associated British Foods ended up 0.2 per cent after confirming the acquisition of Hovis Group from private equity firm Endless. AB Foods plans to combine Hovis with its existing Allied Bakeries division to create a 'profitable UK bread business that is sustainable over the long term'. Europe The pan-European STOXX 600 index closed 0.1 per cent lower, after hitting a near five-month high earlier in the session. Aerospace and defence stocks fell 0.8 per cent ahead of the US-Russia summit on Ukraine. Technology stocks fell 0.6 per cent, weighing on the STOXX 600 index. ASML, the world's biggest supplier of computer chip-making equipment, fell 1 per cent after US peer Applied Materials lowered its fourth-quarter earnings forecast due to weak demand in China and impacts from tariff uncertainty. The Dutch firm had issued a similar warning in mid-July, saying it might not achieve its 2026 growth forecast. Chip stocks BE Semiconductor and ASMI dropped 3.3 per cent and 2.8 per cent, respectively. Healthcare shares, which have taken a beating this year from uncertainty around Trump's pharma tariffs, were on track for a recovery. The healthcare index logged its seventh consecutive session of gains, its longest streak since late January. Regional bourses were mixed, with Germany's DAX and the UK's FTSE declining, while France's CAC and Spain's IBEX posted gains. New York The Dow hit a record high earlier in the session, becoming the last of Wall Street's main indexes to soar to a new peak. Benchmark S&P 500 and the Nasdaq were losing ground, dragged down by technology, utilities and financials stocks. The Dow Jones Industrial Average rose 0.09 per cent, the S&P 500 fell 0.25 per cent and the Nasdaq Composite fell 0.36 per cent. Shares in Intel jumped more than 2 per cent by lunchtime on Friday, following a 7 per cent bounce the previous day, after reports that the Trump administration had discussed an unusual move to acquire an ownership stake as part of a plan to revive the troubled US chipmaker. Shares of UnitedHealth Group surged more than 13 per cent on Friday after billionaire Warren Buffett's Berkshire Hathaway bought five-million shares of the company, providing a shot in the arm for investors who think the health conglomerate will turn around under its new CEO. - Additional reporting: Reuters, PA
Irish Times
8 hours ago
- Irish Times
DAA overseas businesses make €42m
DAA's international businesses earned €42 million profit last year, new figures show. The State-owned airports operator, which runs Cork and Dublin airports in the Republic, also owns DAA International, a management and consultancy firm and Aer Rianta International, which runs duty free stores in airports around the world. The pair jointly earned profits of €42 million in 2024, according to accounts just filed for both businesses. Aer Rianta International, the bigger of the two, grew profits 33 per cent last year to €36.2 million from €27 million in 2023. READ MORE Sales dipped slightly to €217.5 million from €218.3 million, according to the accounts. Net assets rose 13 per cent to €330.5 million from €290.7 million, aided by the growth in profit. Aer Rianta International holds DAA's shares in Düsseldorf Airport in Germany, and in Hermes Airports, which operates Larnaca and Paphos airports in Cyprus. It manages shops in Cork and Dublin airports along with interests in retailers in 27 gateways across 13 countries, including Abu Dhabi, Barbados, Canada and Saudi Arabia. Directors Ray Hernan and Colin O'Donovan said the company performed strongly last year, growing revenues and generating 'robust profits', in their report filed with the accounts. Pretax profits at DAA International grew 6 per cent to €5.87 million from €5.55 million last year, its accounts show. Revenue rose 10 per cent to €44.3 million from €40.2 million. Net assets almost trebled to €8.87 million from €3 million, according to the accounts. DAA International offers advice, management and investment services to airport clients around the world. Its flagship contracts in 2024 were for the management of King Abdulaziz International Airport in Jeddah and the Red Sea International Airport, Saudi Arabia. Directors Edward Rowney and Miriam Ryan said it also provided consultancy in the Philippines, Australia, Canada, Uzbekistan and Europe during last year. The directors say that the company continues to position itself to cash in on emerging opportunities this year and beyond. In DAA's annual report, published earlier this year, the State company's chairman, Basil Geoghegan, noted that DAA International 'played a crucial role in assisting its clients at Red Sea International and Jeddah airports', aiding them in handling 49 million passengers last year. He also noted that Aer Rianta International had a record year. DAA will report results for the first six months of this year early next month.
