Consumer sentiment improves marginally in August but cost-of-living concerns rise 

Irish League of Credit Unions index shows consumer sentiment index reached 61.1 during August, up from the 59.1 figure reported for July

The survey found found two thirds of Irish consumers are spending more on groceries than a year ago while 61% said they are spending more on household bills with the vast majority of both of these groups citing higher prices. Stock picture

Consumer sentiment increased marginally during August as the EU-US trade deal brought a level of certainty to the economic outlook but concerns over higher grocery prices and household bills continue to mount, the latest Credit Union consumer sentiment survey shows.

The survey, conducted for the Irish League of Credit Unions by Core Research, showed a consumer sentiment index reading of 61.1 during August, up from the 59.1 figure reported for July.

While this is an improvement month-to-month, it remains slightly lower than the 64.9 average value of the sentiment index for the first eight months of 2025 and some distance below the 83.8 average for the near 30-year history of the survey.

The analysis of the survey’s results was written by economist Austin Hughes.

The survey found that consumers are still negative but are less nervous about the economic outlook after the EU and US finalised a trade agreement which would see EU goods hit with a 15% tariff, considerably lower than previously threatened rates.

While the rate is expected to impact exporters in Ireland, the deal reduced the uncertainty about the economic outlook. Mr Hughes said: 

While the negative impact on the Irish economy may be material, it is likely to prove manageable. 

He added that early official estimates suggest the tariffs will shave 1.5 percentage points off growth in the next five years.

Mr Hughes suggested the publication of the Government’s new National Development Plan in late July may have had some positive impact during the survey period on major consumer concerns around infrastructure and housing in particular.

However, the survey also shows that the 12-month outlook for the economy is “well below levels of a year ago or the average thus far in 2025, which implies Irish consumers expect the Irish economy to be materially weaker in a year’s time than it is today”.

Mr Hughes said while trade wars have posed a threat to the Irish economy in recent months, the “pressure on living costs has been a painful and persistent difficulty for many Irish consumers”.

The August survey saw a renewed focus on rising prices, according to Mr Hughes, with a particular spotlight on a “persistently fast rise in grocery prices” which prompted “further weakening, albeit relatively limited, in those elements of the survey dealing with household finances”.

Participants in the survey were asked specifically whether they had increased or reduced their spending in various areas. It found two thirds said they are spending more on groceries than a year ago while 61% said they are spending more on household bills with the vast majority of both of these groups citing higher prices. Mr Hughes said: 

While more consumers say they are spending more on necessities than a year ago, far fewer are spending more on discretionary items and going out, with a greater number saying they have cut back. 

He added that there hasn’t been a “dramatic deterioration” in consumer thinking around their personal finances but rather “already poor sentiment on financial matters worsened further”.

“It suggests that many Irish consumers continue to feel their personal financial circumstances continue to worsen when it had been widely expected that this year would see them clearly better off.”

The survey was based on a sample of 1,000 Irish adults.