Irish consumers feel more financial pressure than their peers across Europe – survey 

Survey finds that most consumers plan to reduce spending, 33% have scaled back savings contributions, and 28% have drawn down existing savings to cover the cost of living

The CRIF report found that 42% of Irish consumers surveyed expect to have less money left at the end of the month, versus a European average of 35%. Picture: iStock

Irish consumers “feel under significant financial pressure” to a greater extent than their European peers, with a majority of them planning on reducing their spending over the coming year, a new survey has found.

In addition, 42% of Irish consumers expect to have less money left at the end of the month, versus a European average of 35%.

According to the report, by global financial intelligence firm CRIF, 38% of Irish consumers say they have already proactively sought out discounts, 33% have scaled back savings contributions, and 28% have drawn down existing savings to cover everyday living costs.

According to CRIF, the findings “reveal Irish consumers feel under significant financial pressure, exceeding European averages on several measures of financial concern”.

Half of Europeans plan to reduce their spending over the next 12 months, while just 12% intend to increase it.

Business development director for the UK and Ireland at CRIF Giovanni Catinari said despite the “economy’s recognised resilience” many consumers in Ireland are “feeling the pinch”.

“With inflation and geopolitical uncertainty continuing to weigh on confidence, more than two-fifths of Irish citizens are watching their disposable income decline, forcing many to cut spending or dip into their rainy-day savings to cover everyday costs.”

The survey was conducted on 5,000 consumers and 500 business decision-makers across Ireland, Germany, Italy, Poland, and the UK.

Middle East is firms' biggest worry

In terms of business sentiment, 36% of European firms have revised growth plans in response to the economic climate, 29% have prioritised cost-efficiency measures, and 27% have paused hiring.

“This reflects a broader European mood of caution, with both households and businesses weighing affordability, resilience and long-term planning more carefully,” CRIF said.

The conflict in the Middle East is the biggest concern for European consumers and businesses, cited by 50% and 37%, respectively. US-European tensions are a worry for 35% of consumers and 32% of business leaders.

“Confidence in the global competitiveness of Europe’s financial sector remains fragile. Only a third, 37%, of consumers and just over half, 56%, of business leaders believe European financial services can successfully compete with other regions, such as the US,” CRIF added.