Irish consumers slightly less gloomy heading into Christmas

DUBLIN, (Reuters) – Irish consumer sentiment edged a touch higher for the third successive month in December, likely in response to falling energy prices and expectations of lower inflation and interest rates next year, a survey found.

The Credit Union Consumer Sentiment index rose to 62.4 from 61.9 in November. The index stood at 77 in February 2022, before Russia’s invasion of Ukraine, and dropped to a 14-year low of 42.1 in September 2022 amid a cost of living crunch.

Ireland’s economy was still the fastest growing in the euro zone last year following a sharp post-pandemic rebound, but momentum has slowed down this year and activity flatlined in the third quarter amid deteriorating sentiment.

The December sentiment reading remains sharply lower than the survey’s 28-year average of 84.7.

“Overall, Irish consumers remain concerned about their financial circumstances and cautious in their thinking about the year ahead, but they are notably less negative and fearful than they were twelve months ago,” the survey’s authors said.