Consumer sentiment rises after tariff pause but remains low compared to long-term trends
This month's consumer sentiment index reading stood at 60.8 - up from 58.7 during April but significantly lower than the 74.9 figure seen as recently as January. The May survey reading is also some distance below the long-term survey average of 84.0.
The Credit Union Irish Consumer Sentiment Survey is based on a sample of 1,000 adults and is conducted by Core Research on behalf of the Irish League of Credit Unions. The analysis of the survey was written by economist Austin Hughes.
Mr Hughes said the increase between April and May 'is not altogether surprising' but the 'latest survey reading still suggests Irish consumers remain gloomy, with confidence remaining well below the level of a year ago and its long-term trend'.
He said the improvement in Irish consumer sentiment during May was driven by a 'limited easing in concerns about the outlook of the economy and jobs' which more than offset a 'slight weakening' in consumers' assessments of their own personal finances.
The survey shows the weakest elements of consumer confidence related to household finances likely reflecting a pick-up in grocery bills of late.
While the outlook for household finances over the next 12 months was effectively unchanged, Mr Hughes said this should be seen in the context of that being the weakest element of the April survey reading.
'Our sense is that renewed consumer concerns around their household finances owe much to a continuing step-up in grocery price inflation that has translated into ongoing and somewhat unexpected financial strains for significant numbers of consumers,' he said.
'The tone of the May sentiment survey suggests consumers are slightly less nervous about an apocalyptic collapse of the Irish economy than they were a month ago but there is still a strong sense that economic and financial conditions will be very challenging.'
The strongest improvement in consumer sentiment between April and May was seen in the outlook for jobs. 'This likely reflects a partial correction of the thinking that prompted a sharp weakening in sentiment in April,' Mr Hughes said.
'Comfortable' v 'clinging on'
In the survey, consumers were also asked how their household would deal with an unexpected financial emergency costing €1,000.
It showed 15% saying they couldn't deal with an unexpected financial outlay while 37% said they would rely on savings. Another 18% said they would use their current incomes to handle such a problem.
'Drawing together those who can meet an unexpected financial emergency through savings or from their current incomes, the 2025 survey might suggest that a little over half of Irish consumers might be described as 'comfortable' at present,' Mr Hughes said.
'At the other end of the financial spectrum, roughly one in four Irish consumers might be considered to be 'clinging on'. This grouping includes those who say they could not handle a financial emergency at present as well as those who would resort to borrowing from a lender other than a bank or credit union and those who would sell something,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Agriland
32 minutes ago
- Agriland
Closing dates extended for US-Ireland agri research partnership
An extension of the closing dates of the 2025 call for proposals in agriculture under the US-Ireland Research and Development Partnership has been announced. The call aims to support Irish and US researchers to collaborate on projects across 12 areas important to agriculture. These include animal health and welfare, animal breeding, antimicrobial resistance, soil health, the bioeconomy, data science for food and agriculture, among others. This is a tripartite partnership between the Department of Agriculture, Food and the Marine (DAFM), the Department of Agriculture, Environment and Rural Affairs (DAERA in Northern Ireland) and the US Department of Agriculture National Institute of Food and Agriculture (NIFA USA). Minister of State at DAFM with special responsibility for research, Noel Grealish said that the partnership "provides a very important mechanism for the collaboration and sharing of expertise and resources between researchers across the three jurisdictions". "This international collaboration can enable our researchers to advance our understanding of complex issues and develop solutions in areas such as mitigating antimicrobial resistance across the food chain, biomanufacturing and the bioeconomy, among others," the minister said. "Last year, my department increased the maximum grant rate to €500,000 for Irish partner institutions involved in successful projects and I would encourage researchers to avail of this unique funding opportunity." The call invites eligible research performing organisations from the Republic of Ireland to submit joint research proposals, with collaborating partners from the US and Northern Ireland, under the Agriculture and Food Research Initiative (AFRI) of NIFA. The submission deadline for DAFM and DAERA is four weeks in advance of the stated AFRI deadline for the respective programme area priorities in AFRI's Foundation Competitive Grant Programme. Details of the request for applications (RFA) on the 12 programme area priorities can be found on AFRI's website.
Irish Examiner
2 hours ago
- Irish Examiner
The Menu: The finest in real, homegrown food is vital to our sense of humanity
At the Cork on a Fork food festival, I shall be hosting an event entitled Preserving the Past: Traditional Food Methods in a Modern World, speaking to three Irish food heroes: Fish smoker Sally Barnes (Woodcock Smokery), cheesemaker Dan Hegarty (Hegarty's Cheddar, Temple Gall), and Isabelle Sheridan, founder of On the Pig's Back. It is rightly billed as a 'must for anyone interested in Cork's rich culinary heritage'. Sometimes, however, I have a problem with the word 'heritage' in the context of food, especially Irish speciality produce such as Sally's wild smoked fish, Dan's stunning cheeses, or the world-class Irish produce in Isabelle's retail outlets. 'Heritage' is a close cousin of 'history', as in 'the past', suggesting these are special treats for special occasions rather than the very best of Irish food that should be part of our daily diets. Yes, such products invariably come with a higher price tag than the inferior produce in our shopping baskets so many of us are currently struggling to pay for each week. But it doesn't have to be this way. One reason, apart from economies of scale, that Irish speciality food products are generally dearer than industrially produced food is that those arms of the State overseeing Irish food production — the Department of Food, Agriculture, and the Marine; the Food Safety Authority of Ireland; and Teagasc — appear to place the interests of the industrial food sector over those small producers who, in my view, do all the heavy lifting when it comes to selling Ireland as a food nation. When tourists return to their home countries raving about Irish food (as 84% of them do, according to Fáilte Ireland), they speak of fabulous foodstuffs such as Irish Farmhouse cheeses, not industrially produced whey nutritional by-products. They gush about beautiful produce in the better restaurants that source locally, the work of a stalwart few remaining growers. Those small producers appear to be rewarded for their efforts with an over-zealous policing of a system of regulation, designed almost entirely for the industrial food sector. The pursuit of profit and a rising GDP is prioritised over creating a resilient, sustainable food system that can withstand outside shocks and feed the nation with premium-quality homegrown foodstuffs. Incredibly, in one of the best countries in the world for producing food, it is not something we can currently do, overwhelmingly reliant as we are on imported produce. I recently wrote about Peter Twomey of Glenbrook Farm, who raises wonderful free-range pork. It struck a chord. Older readers recalled a long-forgotten taste memory; younger readers were intrigued by an infinitely superior alternative to the industrially-reared meat which makes up the bulk of the nation's pork consumption. A good news story? Not quite — Peter's future remains fraught as he struggles to find a small abattoir suitable for his lower volume of livestock. A farming friend who once produced some of the best poultry in Ireland has given up entirely, heartbroken by the excessive demands of a regulatory system and by having to travel farther and farther as more and more small abattoirs closed for good. Now he just produces eggs, fine eggs, but I no longer enjoy local chicken, turkeys, and even the occasional goose of such sublime quality. Why? Because, I believe, state policy is entirely skewed towards industrial processors and large livestock production. A small coterie of stakeholders thrives, while we as citizens increasingly lose access to the very best food we can produce as a country. When it comes to food, 'heritage' and 'tradition' should not speak of former glories but, rather, be seen as hallmarks of true quality, the last remaining reminders of what our once sustainable, healthy food system looked like in a world before TikTok, Deliveroo, and the avalanche of deeply unsustainable, inferior produce from all around the globe. The more distance we put between us and our natural food systems, the more distance we put between ourselves and one of the most important parts of what it is to be human. TABLE TALK: THE SCHOOL OF FOOD The latest rounds of UCC's MA and Postgraduate Diploma in Food Studies and Irish Foodways, the first university courses with a dedicated focus on Irish food, are now open for registration, offering students the opportunity to add rigour to their food knowledge, which could prove vital when professionalising or commercialising an interest in Irish food, including business development and enterprise and tourism projects connected to Irish food culture. ONE PLATE FOR PALESTINE The One Plate for Palestine initiative that saw professional chefs and domestic home cooks alike rustling up a special Palestinian-themed dish to raise funds and awareness for starving children in Gaza had a fundraising target of €25,000 but has now passed the €70k mark. Accordingly, organisers Beverley Mathews (L'Atitude 51) and Barbara Nealon (St Francis Provisions) are keeping the door open for further donations — both private and professional — until the end of August. TODAY'S SPECIAL: Mint Toffee Brittle from Second Street Bakeshop I am very partial to the fresh, cool flavour of mint, particularly in confectionery where it seems to salve a perhaps guilty conscience, persuading me that flavours so fresh and clean surely equates to 'health food'! The Dark Mint Chocolate version of Second Street Bakeshop's Irish Toffee Brittle is not quite health food, but it certainly brings extreme joy to my palate and heart, kicking off with mint-infused sustainably farmed Belgian dark chocolate, which melts away to the stunning caramel crunch of the toffee brittle below, made using premium Irish ingredients. And, in another 'healthy' top tip, I can also recommend wrapping a few slabs in greaseproof paper, and using a rolling pin to smash into tiny shards to sprinkle over and enhance the experience of eating the finest vanilla ice cream.
Irish Examiner
9 hours ago
- Irish Examiner
Michael Johnson apologises as troubled Grand Slam Track misses payments to athletes again
Grand Slam Track founder Michael Johnson has apologised for missing payments to athletes and said the event would not go ahead in 2026 unless a solution was found. The league, which is in its inaugural season, reportedly owes competitors millions of dollars in appearance fees and prize money, and in June the fourth and final meet on the calendar - scheduled for Los Angeles - was cancelled. In a statement on Friday, Johnson said the company was "struggling with our ability to compensate" athletes due to not receiving promised funding. "It is incredibly difficult to live with the reality that you've built something bigger than yourself while simultaneously feeling like you've let down the very people you set out to help. However, I have to own that," the former Olympic champion said. "And yes, the cruellest paradox in all of this is we promised that athletes would be fairly and quickly compensated. Yet, here we are struggling with our ability to compensate them. "We were devastated when we learned we would not receive the funding committed to us. We worked tirelessly alongside our investors and board to find a quick solution to the problem. "Up until and even after the LA postponement, we were getting positive signs that a solution was close." Johnson said Grand Slam was now working to put new systems in place with the aim to ensure this did not happen again in the future. He added: "While I am no stranger to setbacks and overcoming obstacles, as an athlete, professionally and personally, this current situation of not being able to pay our athletes and partners has been one of the most difficult challenges I've ever experienced. "The 2026 season will not happen until these obligations are met - and that is my number one priority." Irish Olympians Andrew Coscoran and Sharleen Mawdsley are among those who who prizemoney over the course of the three meetings which did take place. Coscoran hit what was supposed to have been the biggest pay day of his career in the Florida meeting, awarded $50,000 as the runner-up in the combined long-distance category. He followed that up by winning $12,500 in Philadelphia for a fourth-place finish in the 3000m. Sprinter Mawdlsey won $15,000 for her sixth-place finish in the sprints category at the same event.
