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Irish consumer confidence closed out 2025 at a relatively low level, reflecting persistent concerns about living costs even as headline economic indicators pointed to continued growth. The latest Credit Union Consumer Sentiment Survey shows sentiment edging up marginally in December to 61.2, from 61 in November. The movement is modest and does little to alter the broader picture of caution among households.

Confidence levels remain well below both the long-term survey average of 83.6 and the 73.9 recorded at the end of 2024. They have also failed to recover meaningfully from April’s two-year low of 58.7, reached during a period of heightened concern about potential trade disruptions linked to tariff discussions involving the United States.

This subdued outlook stands in contrast to trends elsewhere. Consumer sentiment across the euro zone and in neighbouring United Kingdom has improved since similar trade-related fears caused confidence to dip earlier in the year. That divergence raises uncomfortable questions about whether Irish consumers are reacting more sharply to external risks or whether domestic cost pressures are weighing more heavily than headline growth figures suggest.

According to the survey’s authors, the past year has brought a broad-based deterioration in how Irish consumers view both the wider economy and their own financial circumstances. Given Ireland’s exposure to international trade, especially its reliance on the US market, sensitivity to global policy shifts is understandable. At the same time, an exclusive focus on external risks risks overlooking more immediate pressures such as housing, energy and everyday expenses, which continue to shape household sentiment.

There is also a growing disconnect between confidence and economic performance. Modified domestic demand, the Government’s preferred measure of underlying economic activity, increased by 4.1% year on year during the first nine months of 2025. This resilience suggests that caution among consumers is not rooted in falling output or employment, but rather in uncertainty about how growth translates into personal financial security.

The data challenges the assumption that strong macroeconomic results automatically lift confidence. For businesses and advisers, the message is clear. Consumers remain wary, spending decisions are likely to stay conservative, and economic growth alone may not be enough to restore optimism unless cost-of-living pressures are addressed in a tangible way.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.