Consumer optimism has increased in the run up to Christmas, the Irish League of Credit Unions’ Consumer Sentiment Survey has found. 

It is  the first year on year improvement in the December sentiment survey results since 2017. 

“I think that consumers feel the worst is over in terms of the living crisis,” economist Austin Hughes said. 

“That doesn’t mean it’s going to get wonderful anytime soon.

“I think we’re seeing Christmas fear ease quite a bit but we’re not seeing a dramatic improvement in Christmas cheer. 

“Consumers still face an uncertain economy.”

Economic forecast

Despite this, interest rates remain high and Mr Hughes said he did not expect that would change in the near future. 

“The European Central Bank is still digging its heels in and warning that inflation is too high,” he said. 

“The momentum is probably towards lower inflation, lower interest rates next year. 

“As a result, consumers feel that, while it’s still quite dark now, there may be brighter days ahead in 2024.” 

Ireland’s GDP is expected to fall by 0.9% this year but increase by 3% in 2024.

Main image: File photo shows shoppers on Dublin's Grafton Street. Picture by: Barry Mason / Alamy Stock Photo