Consumer spending boom from record savings is unlikely to materialise

More than half of households say that they are holding out on spending because they are not sure which way economic policy is going to go

At the end of February 2022, Irish household deposits had risen to more than €142bn or €28,000 per person.

The consumption boom that Irish businesses were expecting due to the record levels of savings by Irish households is now unlikely to materialise to the extent it had been hoped for, Ireland's main business group, Ibec has said.

Faced with increasing energy bills, households will cut back on consumption elsewhere and certain sectors of the economy, particularly those reliant on discretionary spending will lose out.