Consumer sentiment remains steady after year of declining outlook

Findings from the Credit Union Consumer Survey suggest that 2025 has been a worrisome year for Irish consumers, and those worries, for a range of reasons, continue to weigh on sentiment.

Irish consumer sentiment remained steady at a fairly subdued level in December, with a slight easing in cost-of-living concerns and continued encouraging news on Irish economic growth offsetting increased negativity about the jobs market.

The latest Credit Union Consumer Sentiment Survey found that while there was no significant monthly change in consumer sentiment, the December 2025 reading was markedly lower than that recorded twelve months earlier. 

The past year has seen a broadly based downgrade of Irish consumer thinking in relation to economic conditions and their own financial circumstances.

The coincidence of a notably riskier economic environment and the reality of continued increases in the cost-of-living almost inevitably prompted a marked drop in Irish consumer confidence over the past twelve months, economist Austin Hughes said.

The survey shows an index reading of 61.2 in December, effectively unchanged from the 61.0 figure reported for November but markedly lower than the December 2024 reading of 73.9.

'Worrisome year'

This suggests that 2025 has been a worrisome year for Irish consumers, and those worries, for a range of reasons, continue to weigh on sentiment.

Irish consumers remain overwhelmingly negative on the twelve-month outlook for the Irish economy, but the degree of concern has eased slightly in recent months, with this continuing in the December survey.

Mr Hughes said encouraging Irish economic growth data for the third quarter and Exchequer returns for the first eleven months released at the start of the survey period, coupled with relatively positive commentaries from the Central Bank and Economic and Social Research Institute at the end of the survey period, likely contributed to a view that a frequently threatened sharp slowdown was, at very least, far from imminent.

Slowing labour market

In contrast to thinking on the general economic outlook, sentiment on job prospects weakened in December, the survey showed. 

Official data showed a marked slowdown in job creation in the third quarter. In addition, while unemployment eased to 4.9% in November from 5.0% in October, it was still notably higher than the 4.2% rate recorded in November 2025. Finally, the December survey period saw continuing warnings about job losses in the tech sector in Ireland.

The December sentiment survey saw a clear if modest improvement from the November reading in Irish consumers assessment as to how their household finances had evolved over the past twelve months, but emphasised that Irish consumers remain very negative overall in relation to their personal financial circumstances. 

"Alternatively, this result might be no more than statistical ‘noise’ or a seasonal inclination towards positivity," Mr Hughes said. 

"In either of these cases, it would likely reverse in early 2026."

Mr Hughes said it could also be that a modest easing in grocery price inflation of late coupled with high-profile media reports of price discounting of some staples, may be influencing consumer thinking at the margin, particularly as concerns around accelerating food prices have been central to consumer worries in regard to living costs through 2025.

"The subdued December sentiment survey suggests that Irish consumers feel a difficult year is ending with continuing economic and financial challenges at home and abroad," said David Malone, CEO of the Irish League of Credit Unions.

"Irish consumers can rely on their local credit union for guidance and support to help them build a better financial future in 2026 and beyond."