Cautious recovery in consumer sentiment

Irish consumer sentiment improved for the second month in a row in June having fallen materially through March and April.

Sharp swings in consumer confidence in Ireland and elsewhere over the past few months were largely driven by changing perceptions as to the immediate impact of the war on Iran on households’ energy bills and the longer-term threats it posed to economic activity, jobs and spending power.

Although concerns have eased somewhat of late, there is still significant uncertainty about the delivery of a lasting peace deal in the middle east while Irish retail oil prices remain somewhat higher than before the conflict began.

For these reasons, the June Irish consumer sentiment reading, while clearly pointing to an easing in concerns and slightly less threatening cost pressures of late, is still lower than at the start of the year. As a result, the sentiment survey currently signals a concerned and, in many instances, cash-constrained Irish consumer.