Safety concerns around Covid-19 have dropped dramatically which could see businesses get a boost over the next three months, according to Deloitte's State of the Consumer tracker.
A big increase in the perceived safety of hotels, up 22% to 70%, and increases in the proportion of people planning to stay in a hotel (55%), attend in-person events (53%) or take an international flight (37%) in the next three months, compared to last month.
Commenting on the latest results, Daniel Murray, partner and head of consumer at Deloitte Ireland, said "Safety concerns related to Covid-19 have significantly receded. There have been double digits rises across the board in terms of consumer confidence to undertake ’normal activities’ again, such as attending in person events or taking a flight. This is to be welcomed, as many businesses seek to gain ground in 2022."
On the other hand, the rising cost of living is becoming a major worry for consumers, with one in four people now concerned about their ability to make upcoming payments.
Four in five people (80%) reported concerns about the rising cost of everyday items, an increase of six percentage points from last month and compared to a global average of 72%, with alcohol, tobacco, groceries and restaurants perceived to have seen the largest hikes.
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Two-thirds (67%) believe the price of groceries has jumped (+7%) while 48% believe restaurants are pricer (+8%), and just 8% of consumers are not concerned about inflation.
Consumer spending was up for the fourth consecutive survey period, rising €31 to an average of €2,608, with the latest CSO Consumer Price Index for December showing the price of goods has increased 5.7% year-on-year, and 18% for transport and 11.8% for housing, water, electricity, gas and other fuels.
Murray added: “Given rapidly rising inflation in a host of sectors, and significantly increased fuel, electricity and heating bills, many people are feeling the pinch.
"The government are acting to mitigate some of the impact in the shorter term but given that energy prices are not likely to drop in the foreseeable future - particularly with the unstable geopolitical situation between Russia and Ukraine - and that materials costs are increasing in many industries, the impact is being felt across the economy.
Of the 1,000 Irish residents surveyed between 27 January and 1 February, 53% said they were concerned about the amount of money they had saved, up two percentage points from the last survey.
Housing remains the country's largest expense at an average of 22% of spending, with spending otherwise stable across all the main categories, including groceries, clothing, restaurants, healthcare, electronics and entertainment, while financial stress is the primary driver of anxiety in Ireland (47%).
(Pics: Getty Images)
