Consumer sentiment falls ahead of Budget, credit union survey finds

Irish League of Credit Unions chief executive David Malone: 'The drop in consumer sentiment in September is not at all surprising, with worrisome increases in global energy prices of late emphasising the strains many Irish households will face in keeping their homes bright and warm through the winter months ahead.' Picture: Robbie Reynolds

Consumer sentiment fell to a four-month low in September, reversing a slight increase seen in August and leaving the economic and financial mood of Irish consumers at a four-month low.

Renewed upward pressure on energy prices, geopolitical uncertainty, and higher living costs has led to a bleaker economic outlook, and the September Credit Union Consumer Sentiment Survey shows a modest fall to 61.1 from 63.2 in August — reversing the slight increase seen in August and sufficient to bring sentiment back to its lowest level since May 2026. 

The Credit Union Irish Consumer Sentiment Survey is a monthly survey of 1,000 adults with a higher score suggesting higher positive consumer sentiment. The September reading of 61.1 lies below the 10-year average of 76.1. The limited monthly fall in sentiment in September brings the index back in line with its 12-month average of 60.8.

The survey comes a week out from Budget 2027 and amid fears of a cooling in jobs market. Only one in 12 survey respondents see Budget 2027 significantly improving their living standards while one in two expect no improvement. 

"The drop in consumer sentiment in September is not at all surprising, with worrisome increases in global energy prices of late emphasising the strains many Irish households will face in keeping their homes bright and warm through the winter months ahead," said Irish League of Credit Unions chief executive David Malone. 

Irish consumers have been consistently negative about the outlook for the Irish economy. Although the September reading is some distance above those seen in the spring when the war on Iran began, the survey suggests a strong consensus among consumers that the Irish economy will weaken over the next 12 months. 

A surge in world oil prices (from $91.6 per barrel at the end of the August survey period to $105.80 at the end of the September survey) threatened a further substantial drain on spending power ahead of the onset of increased seasonal spending on heat and light this winter. 

The largest month-on-month decline in sentiment in September's survey was in relation to consumer thinking around the outlook for jobs, despite unemployment remaining at 5%. Irish consumers were also more nervous about their household finances in September, as inflation accelerated to 3.7% in August from 3.4% in July. 

"Upward pressure on borrowing costs was signalled by the ECB announcing another increase in official interest rates in early September and markets anticipating a sequence of rate hikes through the next 12 months," the survey noted. 

"In addition, several more domestic energy suppliers notified material increases in their pricing while there were also announcements of further increases in health insurance costs. The survey period also saw the announcement of a 15% average increase in bus and rail fares to take effect from next January. 

"The fact that these were the first increases in this area may have encouraged a view that a new era of larger price increases has now taken hold."

Regarding Budget 2027, consumers were asked their top three priorities. Improvements in healthcare were still seen as a key issue, with 44% of consumers citing this as a top three priority. Cost of living supports were cited by 41% of consumers as a top three priority while housing remains a priority according to 38% of Irish consumers. 

Specific measures to deal with motor fuel costs was cited as a top three priority by 25% of consumers. Some 29% of consumers indicated that easing the tax burden on workers should be a priority for Budget 2027.