Irish consumers are becoming more optimistic about the economy despite continuing concerns over the cost of living, according to the latest Consumer Mindset Report from Core Research, which found improving sentiment, easing affordability pressures and rising levels of happiness even as electricity prices and household costs remain a source of frustration.
The monthly survey of 1,000 nationally representative adults found the Credit Union Consumer Sentiment Index rose to 62.2 in June, marking the second consecutive monthly increase and returning confidence to levels seen at the start of the year. According to the Core Research report, the improvement suggests consumers are gradually becoming more resilient despite ongoing economic uncertainty.
The research, more than half of respondents (54%) remain “very” or “extremely concerned” about the cost of living, although that figure has eased from earlier highs. The report notes that concern is particularly acute among people aged between 35 and 55 and among lower-income households, while consumers’ expectations for their own financial outlook over the next 12 months have improved modestly.
The research also notes that affordability pressures fell by six percentage points during June. While childcare and education costs eased significantly, travel and holiday expenses increased as consumers prepared for the summer season. Food, housing, energy and transport remain the areas placing the greatest strain on household budgets, with more than half of consumers continuing to experience affordability pressures across these essential categories.
One of the report’s strongest findings centred on electricity costs. According to the Core research, news that electricity prices in Ireland are now 40% higher than the European average was regarded as the country’s most significant news story during the month, with 71% of respondents aware of the issue and 91% describing it as personally important.
The research also found that electricity prices provoked the strongest emotional reaction among consumers. According to the report, 71% expressed negative emotions about the issue, with anger emerging as the dominant response.
“Anger is the dominant emotional response to news that our electricity prices are now 40% higher than the European average,” the report states. “Overall, 71% indicate negative emotions. This reflects the frustration and sense of unfairness that we pay significantly more than our European neighbours.”
Despite those concerns, the report suggests consumers are becoming more emotionally resilient. According to the Core research, levels of enjoyment and happiness increased during June while stress and frustration continued to decline, leaving positive emotions outweighing negative ones by a growing margin.
“We are seeing lower levels of frustration and stress than previous months, while levels of enjoyment and happiness are increasing slowly,” the report says. “Positive emotions now outweigh negative ones, and the gap is widening.”
The report argues that consumers are increasingly focusing on aspects of life they can control rather than external events.
According to the Core research, “people have become better at absorbing the external shocks that keep coming, each one as unexpected as the last,” adding that this resilience “will help us make further positive shifts, albeit in small incremental steps.”
When it came to examining social connections, Core also looked at how people spend time with each other and the value they place on these relationships. “A key finding is that only 21% of adults say their social life has remained unchanged, meaning that almost four in five people have seen the way they connect with others evolve over time.”
According to Core, “these findings suggest that time alone does not determine the strength of social connection. For many people, reduced opportunities to meet are being offset by a greater focus on the quality of those interactions. However, for one-quarter of adults, spending less time with others is accompanied by a diminished sense of connection, highlighting that both the quantity and quality of social interaction are important drivers of wellbeing and resilience.”
Over the coming months, Core says its research will continue to explore how social connection is changing in Ireland, including how people are prioritising relationships and spending their leisure time.
