Consumers are more upbeat about their money and are all set to spend over the festive period and New Year, a study shows, writes Sarah Slater.

It appears Santa may be a little more giving as fears ease around household finances despite increased concerns about the economic outlook.

Shoppers’ buying plans have improved for the fourth month in a row, suggesting an improving trend in consumer spending, the Credit Union Consumer Sentiment Index study, along with Core Research, found.

The survey found that those on higher incomes are more positive about the economy while those who are struggling are comparatively negative.

Just under half of Irish consumers think the economy is better than in their parents’ time, but one in three thinks it is worse.

Consumer opinion is evenly divided on how the economy is faring with 30% believing it is better compared to other economies, 31% thinking it is worse, and 36% saying it is similar.

On a more mixed note, 30% of consumers see a stronger economy in ten years’ time, 34% see it being weaker, and 29% see it being similar to now, which is fairly strong, according to the Irish League of Credit Unions.

The December survey period saw the European Central Bank (ECB) cut interest rates and, arguably of greater importance, signal the prospect of a further drop in borrowing costs in 2025, the study stated.

In addition, several reports pointed to the prospect of solid wage growth in the year ahead.

The CEO of the Irish League of Credit Unions, David Malone, said it is “encouraging” that the survey suggests consumer spending plans are “continuing to improve as household finances are expected to recover in 2025”.

The study highlights that those aged over 55 were more likely to express a positive view on Ireland and less likely to express a negative view than younger age groups.

While those aged under 25 were less likely to express a positive view, they were not significantly more likely to give a negative view.

The study found men were almost twice as likely to say Ireland compared favourably to other countries while women were nearly twice as likely to say Ireland compared unfavourably to other countries.

Household living costs have continued to increase even though inflation has eased.

However, despite the threat of marked changes in US policy when president-elect Donald Trump takes office next month, as well as a more fractured global economy, a relatively positive picture is painted by the latest study.

It shows household incomes are now increasing faster than inflation with consumers feeling less fearful about the prospects for their own finances in the year ahead.

It comes as consumer confidence increased in the US and UK this month.

However, in neither instance did this increase suggest any marked improvement in the mood of those consumers.