Donald Trump's tariff threats send Irish consumer sentiment crashing to two-year low
The collapse in confidence is largely caused by fears about the impact of US president Donald Trump's trade policies rather than current financial strains, the Credit Union Consumer Sentiment Index for April indicates.
Large numbers of people are struggling financially as items such as groceries continue to soar in price.
The survey conducted to produce the index shows consumers are not seeing any dramatic change in their current circumstances. But there is a strong sense that more difficult times lie ahead, the findings suggest.
Economist Austin Hughes, who oversees the compiling of the index, said uncertainty reigns.
'Exactly how far or how fast Irish economic conditions might weaken in the future remains unclear and subject to rapid and random changes on policy pronouncements from the White House and elsewhere,' he said, adding that this makes it difficult for Irish consumers to assess how much to adjust their behaviour.
'A state of flux, as well as fear, is likely to dominate consumer sentiment and spending in coming months.'
The confidence of consumers is also being impacted by ongoing price rises, with food inflation a particular concern.
The Credit Union Consumer Sentiment Survey, in partnership with Core Research, has an index reading of 58.7 for April.
This is far lower than the 67.5 figure for March.
It is the second successive month of a substantial decline in Irish consumer confidence.
ADVERTISEMENT
'The April sentiment number reading is the lowest in just over two years, since the March 2023 figure of 53.8,' Mr Hughes said.
'The April sentiment reading of 58.7 is now also materially weaker than the 29-year survey average of 84.1, and also some distance below the 66.6 average of the past five years.'
Despite the weakening sentiment for consumers,
a special question asked as part of the sentiment survey found most Irish consumers plan to spend on home improvements in the next two years.
About 43pc plan spending money on what is described as 'significant refurbishments', and another 26pc will spend money refreshing their homes.
Those aged under the age of 45 are far more likely to plan significant home-improvement spending in the coming years than those aged over 55.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Daily Mirror
31 minutes ago
- Irish Daily Mirror
National Guard arrives in LA on Trump's orders to quell immigration protests
National Guard troops began arriving in Los Angeles on Sunday on orders from US president Donald Trump, in response to clashes in recent days between federal immigration authorities and protesters seeking to block them from carrying out deportations. Members of California's National Guard were seen mobilising at the federal complex in central Los Angeles that includes the Metropolitan Detention Centre, one of several sites that have seen confrontations involving hundreds of people in last two days. The troops included members of the 79th Infantry Brigade Combat Team, according to a social media post from the Department of Defence that showed dozens of National Guard members with long guns and an armoured vehicle. Mr Trump has said he is deploying 2,000 California National Guard troops to Los Angeles to quell the protests, which he called "a form of rebellion". The deployment was limited to a small area in central Los Angeles. The protests have been relatively small and limited to that area. The rest of the city of four million people is largely unaffected. Their arrival follows clashes near a Home Depot in the heavily Latino city of Paramount, south of Los Angeles. As protesters sought to block Border Patrol vehicles, some hurling rocks and chunks of cement, federal agents unleashed tear gas, flash-bang explosives and pepper balls. Tensions were high after a series of sweeps by immigration authorities the previous day, as the weeklong tally of immigrant arrests in the city climbed past 100. A prominent union leader was arrested while protesting and accused of impeding law enforcement. On Sunday, homeland security secretary Kristi Noem said the National Guard would "keep peace and allow people to be able to protest but also to keep law and order". In a signal of the administration's aggressive approach, defence secretary Pete Hegseth also threatened to deploy active-duty marines "if violence continues" in the region. The move came over the objections of governor Gavin Newsom, marking the first time in decades that a state's national guard was activated without a request from its governor, according to the Brennan Centre for Justice. In a directive on Saturday, Mr Trump invoked a legal provision allowing him to deploy federal service members when there is "a rebellion or danger of a rebellion against the authority of the Government of the United States". Mr Newsom, a Democrat, said Mr Trump's decision to call in the National Guard was "purposefully inflammatory". He described Mr Hegseth's threat to deploy marines on American soil as "deranged behaviour". In a statement on Sunday, assistant homeland security secretary Tricia McLaughlin accused California's politicians and protesters of "defending heinous illegal alien criminals at the expense of Americans' safety". "Instead of rioting, they should be thanking Ice (Immigration and Customs Enforcement) officers every single day who wake up and make our communities safer," Ms McLaughlin added. Vermont senator Bernie Sanders said the order by Mr Trump reflected "a president moving this country rapidly into authoritarianism" and "usurping the powers of the United States Congress". Mr Trump's order came after clashes in Paramount and neighbouring Compton, where a car was set on fire. Protests continued into the evening in Paramount, with several hundred demonstrators gathered near a doughnut shop, and authorities holding up barbed wire to keep the crowd back. Crowds also gathered again outside federal buildings in central Los Angeles, including a detention centre, where police declared an unlawful assembly and began to arrest people.
Irish Times
an hour ago
- Irish Times
The Irish Times view on Ireland's research agenda: the vital role of innovation
It is not surprising that there are demands made, almost on a daily basis, by lobby and special interest groups for the State to increase funding. After all, Ireland has one of the healthiest fiscal surpluses among OECD member states. It is also one of the fastest growing economies, which is putting significant pressure on existing capacity. There is no doubt that almost every call made on the government to increase spending has some justification. But decisions must be made on the basis of what is best for the country in the long term rather than political expediency. The State must, as one key priority, focus on investment that lifts the long-term potential of the economy. In this context, the Government should consider Ibec's calls to increase public investment in research and innovation to 1 per cent of Gross National Income (GNI) by 2035. Donald Trump's second term as US president has underlined the growing vulnerability of Ireland's foreign direct investment model. These include moves to try to force pharma companies and other multinationals to relocate capacity to the US. There is also the growing risk of a global trade war, which will accelerate de-globalisation. READ MORE Against this backdrop, every effort must be made to build up the domestic economy. Producing a world class research and innovation infrastructure is an effective way of doing this. Moreover, Trump's attacks on universities are poised to grow, which will lead to a steady brain drain from the US. Increased investment in research and innovation would put Ireland in a much better position to attract some of this talent. Right now, poor funding of the sector here means the goal of attracting key researchers from the US is a nice headline, but one with little substance. Ireland also has work to do to underpin the funding of the third level sector, for both undergraduate and graduate students, which has a key role in underpinning innovation. Education has been vital to the longer-term success of the economy, but there is a sense of complacency about our position which needs to be tackled
Irish Examiner
3 hours ago
- Irish Examiner
Spar wants a bigger slice of Ireland's €15bn grocery market
South African headquartered Spar group, in releasing its half-year reporting last week, announced its plan to withdraw from its extensive operations in Switzerland and the UK, but in a surprising move, declared its intention to double down on its investment in Ireland. The group's decision to offload its Swiss and UK retail businesses is part of a strategic realignment towards a more profitable international presence. Spar group chief executive Angelo Swartz stated the group experienced a tough operating environment, particularly in its European operations, while the South African consumer remains under pressure as well. Spar group, which operates the eponymous business in Ireland, England, and Switzerland, as well as in its native South Africa, has reported a marginal decline in turnover, to R66.1bn (€3.26bn), in the first half of its financial year to March 28. In disposing of its Swiss operations, it will cut off €800m in sales, and a further €300m in its British operations. By comparison, Spar Ireland achieved record retail sales of €1.3bn in 2024. Spar's withdrawal from its Swiss and UK divisions highlights a broader trend of reevaluating European retail strategies amid uncertain market conditions. Spar's new business strategy, being unveiled, aims to build on the current momentum of the brand in Ireland. The strategy includes plans for new store openings, upgrading existing sites, and a new design for EuroSpar supermarkets. 'There's a cost-of-living crisis in Europe that's made those markets tougher than I can remember. And in South Africa, we've had an economy that's been struggling to grow for some time and consumers are under real financial pressure with relatively high interest rates, albeit coming down,' according to Angelo Swartz, Spar group chief executive. Commenting on Spar's apparent loss of upper-income shoppers, Swartz acknowledges the extremely competitive environment in the retail space. 'There's certainly truth in the observation that growth in our stores that cater to the lower end of the market has been more robust than at the top end,' Mr Swartz said. 'It's been more competitive at the higher end of the market, most certainly for us.' To prevent its Irish operations from following the same downward trend as its discontinued European ventures, the retailer plans to expand its private-label range, emphasising its value proposition to customers. They also plan to go further by ensuring a diverse product range that aligns with changing consumer preferences. This range must include more organic and healthier options, which will help it compete with major players like SuperValu and Centra in the Irish market. Spar operates with its local partner BWG group, as a leading convenience brand in Ireland and holds a relatively small share of the Irish grocery market, less than 1% according to Bord Bia. While this may appear minor compared to other large players, Spar have a significant presence as one of the largest convenience retail groups in the country, with more than 60 years of history and a network of 463 stores across every county in Ireland and providing employment for 14,000 people locally. Spar group's strategy for Ireland was positively impacted by gross margin increase in recent years, with local performance boosted by lower gearing and cost savings, partially offset by increased labour costs, due to the minimum wage increase. Bord Bia conservatively estimates that the Irish grocery retail market is currently valued at €15bn. The quality of food on offer is of the highest standard. However, as in the world over, current global dynamics are driving up cost of living inflation, which will impact how consumers shop and how retailers respond over the coming months. Relatively speaking, the Irish grocery retail market is quite sophisticated in terms of store design and merchandising, remaining predominantly physical, with online a very small percentage of total sales (5.8%, 12 weeks ending January 26) but it is growing according to Kantar market consultancy. Much like Spar, who plan to open 50 more stores in 2025, other retailers in Ireland are still expanding store numbers to find growth. The Irish retail market is highly competitive, with three retailers: Dunnes Stores, Tesco, and SuperValu (part of Musgrave Group) holding 67.7% of the market between them. Getting a bigger slice of the €15bn Irish market, is clearly a key strategic goal of the Spar group management, but the 'big three' supermarkets won't give up market share without a fight. Read More Irish Mortgage Corporation unveils its new joint managing directors
