Irish consumer confidence remains fragile
Irish consumer sentiment improved slightly in August, but households remain concerned about living costs and their finances
Print31 August 2026
Irish consumer sentiment edged higher in August, reaching its strongest level since February 2026, but households remain cautious about both the wider economy and their own financial outlook, according to the latest Irish League of Credit Unions Consumer Sentiment Survey.
The monthly survey, carried out in partnership with Core Research, found consumer sentiment rose to 63.2 in August, up from 61.6 in July.
While the increase was modest, it marked the highest reading since before the conflict in Iran began earlier this year.
Below average
Despite the improvement, sentiment remains well below its long-term average of 83.1, suggesting consumers continue to feel under pressure from the cost of living and economic uncertainty.
The survey found Irish consumers remain negative about their personal financial circumstances, even as concerns about the broader economy eased slightly during August.
Researchers suggest the quieter economic news cycle over the summer, combined with favourable weather and holiday periods, may have contributed to a temporary improvement in confidence.
However, respondents continued to express concerns about employment prospects and household finances, with all five components of the sentiment index remaining in negative territory.
Special questions included in the August survey examined how consumers’ spending habits have changed over the past year.
The findings show that 65% of consumers are spending more on groceries, while 61% are spending more on household bills than they were a year ago.
In contrast, many households are reducing discretionary spending, with more consumers reporting they are spending less on eating out and non-essential purchases than spending more.
Higher prices were overwhelmingly identified as the main reason for increased spending across groceries, household bills, leisure and discretionary purchases.
The survey also found income growth has not kept pace with expectations for many households during 2026.
Only 10% of consumers said their income had increased faster than expected this year, while 19% said it had risen less than expected.
Almost 40% reported no change in income, while 14% said their income had fallen during the year.
The results suggest that while spending on essentials continues to rise, many households are not seeing corresponding increases in disposable income.
The survey found consumer confidence improved modestly across Ireland, the eurozone and the UK during August, while confidence fell significantly in the United States amid growing concerns about inflation and economic activity.
According to the survey analysis, Irish consumers continue to face sustained financial pressure rather than a short-term deterioration, with the August reading sitting broadly in line with the average sentiment recorded over the past five years.
David Malone, chief executive of the Irish League of Credit Unions, said the slight improvement in confidence was encouraging but warned that the overall findings continue to highlight the financial challenges facing many Irish households.
He said local credit unions remain available to support members through both positive and challenging financial circumstances.
Read more: Irish consumer sentiment fell marginally in July
© 2026, ShelfLife by Ryan Brennan
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