9 hours ago
- Business
- Irish Independent
Fear of a global recession is now the main economic worry among Irish households
It has jumped ahead of both the cost of housing and rent, and inflation, as a major worry for consumers, according to the latest Bank of Ireland's Savings and Investment Index.
Plans by US president Donald Trump to impose tariffs and the threats to economic growth from the conflict in the Middle East mean geopolitical events are taking centre stage for householders.
Bank of Ireland's Savings and Investment Index for the second quarter of this year shows concern about a global recession was the number-one worry for 21pc of those surveyed.
This is up 8pc on the last survey in the first three months of the year.
Housing and rental costs continue to dominate concerns faced by younger age groups
The concern is highest among those aged 30 to 59, and among professional/managerial groups.
Housing and rental costs continue to dominate concerns faced by younger age groups. Some 28pc of 16 to 29-year-olds cited the cost of housing/rent as their biggest worry.
Another 24pc of this age group view inflation and the cost of living as their biggest concern.
There was a fall in the proportion of people who say they are saving and in those who believe they are saving enough.
The Savings and Investment Index dropped to 87, down from 94 in the first three months of this year.
Investing habits remained largely unchanged, with an increase in the amount being invested compared with last quarter. Despite this, more than half of consumers believe stock markets will be lower in the next six months.
Chief investment strategist at Bank of Ireland Kevin Quinn said: 'The increase in concerns about global recession comes at a time when geopolitics has taken centre stage, so it's the first time we've seen this come to such prominence in our survey.'
Mr Quinn said global investment markets had experienced a steep downturn in April and headlines about an effective trade embargo had dominated those weeks.
'Markets have recovered significantly since then with a powerful rally from mid-April onwards, but that hasn't moved the dial for Irish households yet,' he said.
'With tariffs dominating public discourse up until quite recently and the Israel-Iran conflict now to the fore, it's little surprise that these concerns are prominent.
'It's also no surprise to see housing concerns and the cost of living remaining uppermost amongst younger age groups.'
Having reached a recent high in the first quarter of this year, attitudes to saving dropped in the second three months.
There was a drop in those saying they are saving
The Savings Index was 87 in the second quarter, down nine since the first quarter.
There was a drop in those saying they are saving and a drop in those who think they are saving enough, a near-term low.
Mr Quinn said that after eight interest rate cuts from the European Central Bank, many savers may feel that the rewards on offer are likely to drop.
In addition, it is possible Irish households are saving less and spending more, with an eye on what tariffs might do to import prices.
