Majority of Irish consumers putting off large purchases due to impact of war in Ukraine
40% of those surveyed said the war was "majorly" responsible for the increased cost of grocery shopping. File Picture
More than half of Irish consumers (52%) are delaying large purchases due to financial concerns, as the ongoing conflict in Ukraine continues to negatively impact consumer sentiment.
According to new research, the number of Irish consumers who said they had recently put off a large purchase increased 5% in the last month.
Deloitte's State of the Consumer tracker also found that 86% of Irish people are now worried about the rising cost of living — a 4% increase in four weeks.
Consumer concerns over inflation among Irish people were the third-highest among the 23 countries surveyed by Deloitte.
Over 40% of Irish consumers said they were "extremely concerned" that the Russian invasion of Ukraine would impact upon their everyday lives, with the same proportion believing the war was "majorly" responsible for increased grocery shopping costs.
90% said the conflict was having a significant impact on the price they pay to fuel their vehicles.
"The full impact of the war in Ukraine is evidently affecting consumer sentiment, along with both purchasing power and spending decisions," said Daniel Murray of Deloitte.
“The terrible ramifications of the situation in terms of its human cost, is of course the primary concern. However, given its broader political and economic effects globally, the invasion is having a much wider impact across society — not least on global supply chains and rising costs of production and goods.
Mr Murray said people in Ireland were now "really feeling this impact."
Average consumer spending is now €2,654, an increase of €123 on Deloitte's last survey, and the largest increase since September of last year.
The number of people optimistic that their financial situation will improve within three years also dropped by 5% last month to 43%.
