Consumer sentiment in Ireland dipped slightly in July, as worries around the rising cost of living continued to dampen expectations for household finances.

At the same time, increased concern over a potential 30% tariff on EU exports to the US has added to unease about Ireland’s broader economic outlook.

Following a modest recovery during May and June, July’s figures indicate a reversal, with consumer confidence retreating to levels last seen in April.

That period marked a sharp decline in sentiment driven by fears of an emerging tariff-related trade war.

While views around the general economy and employment have shown slight improvement since the initial reaction to the so-called 'Liberation Day' tariff announcements, confidence in household finances and consumer spending has weakened.

This likely reflects a combination of sustained pressure from inflation and growing public expectation that the upcoming October Budget may not deliver sufficient relief to ease these burdens.

Commenting on the latest data, David Malone, CEO of the Irish League of Credit Unions, stated: “Responses to the special question in the July survey emphasise the differing priorities consumers see for the Irish economy.

“In many instances, this reflects very different personal circumstances and priorities.

“Consumers can trust their local credit union to understand their varying financial requirements and always give them the specific support that their financial circumstances might require.”

The July survey included a special question asking respondents to identify the most urgent issue facing the Irish economy.

Results highlight a clear focus on everyday pressures:

• 37% identified the cost of living as the most pressing concern
• 19% cited the ongoing housing shortage
• 8% pointed to trade threats and tariffs

Responses also revealed notable variations in priorities depending on age and income levels, underlining the diverse experiences of Irish households navigating the current economic climate.

While the broader economy remains resilient, these findings underscore the continued strain on consumer confidence and spending power.

Businesses, policymakers, and financial service providers will need to stay closely attuned to these pressures as they plan for the second half of the year.