Only one in 10 believe the economy will improve over the next year

Over half of Irish consumers are in a worse off place financially this year, according to new research carried out by Permanent TSB and Kantar

Thu, 25 Aug, 2022 - 07:36

Martha Brennan

Two out of three Irish consumers believe the economy will continue to deteriorate over the next year, while over 60% feel their financial situation is in a worse place than it was last year, according to new research by Permanent TSB.

The bank released the results of its latest Reflecting Ireland survey on Thursday, revealing a gloomy sentiment as the cost of living continues to squeeze pockets.

House prices were of particular concern for many, with nearly half (47%) of respondents saying they are unable to afford to live in their preferred community and 35% unable to afford to live in the area they were raised.

Of that group, 60% of those aged under 25 cannot afford to live in their preferred community.

Concerns over the cost of living have grown since the bank's last Reflecting Ireland survey, held at the start of the year, with consumer sentiment now at levels of negativity not seen since the 2008 financial crisis.

In total, 60% of respondents feel they are worse off than this time last year, up from 30% at the start of the year, and half expect to be even worse off next year — twice as many as in January.

Only one in 10 expect the economy to improve over the next year.

“We’re clearly looking at some difficult months ahead for consumers and the increased levels of concern show that people are preparing for a difficult winter," said Leontia Fannin, Permanent TSB head of corporate affairs.

Behavioural scientist Claire Cogan added: “Our research shows that the continuing rise in the cost of living is weighing heavily on people’s minds and that negative sentiment is on the rise as more people are worrying about their personal financial circumstances."

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