Consumer sentiment index shows Irish gloom despite wealth gains

Three-quarters of Irish people say cost of living has worsened

The contrast is highlighted by the Credit Union's Consumer Sentiment Index, which celebrates its 30th anniversary this month. 

According to RTÉ, comparing the latest figures with those from 1996 reveals a widening gap between the country's economic progress and how people feel about their financial security.

Average household wealth has more than tripled since 1996, while spending per person has increased by around 90% after accounting for inflation and population growth. 

That is well ahead of the EU average increase of 47%.

However, consumer confidence remains low. The index scored 61.1 in September, compared with its 30-year average of 83 and a peak of 130 in 2000. 

Three-quarters of those surveyed said the cost of living and their chances of buying a home were worse than they had been three decades ago.

Irish housing crisis fuels growing sense of ‘us and them’

Housing costs help explain the frustration. In 1995, buying a home cost roughly five times the average annual wage. 

By 2024, a house in Dublin cost almost ten times the median salary, according to RTÉ's analysis of Central Statistics Office figures. 

The affordability crisis continues to put pressure on politicians to ease household costs, with a possible fuel excise cut among the measures discussed ahead of Budget 2027.

Economist Austin Hughes, who has tracked consumer confidence for years, told RTÉ's Morning Ireland: “There's no doubt that Irish consumers are notably better off now than they were 30 years ago, but it doesn't feel like that.”

He pointed to shortcomings in housing, healthcare and infrastructure, alongside international instability and the lasting impact of the Celtic Tiger crash. 

Hughes said the crash left people “psychologically and financially scarred”, while growing wealth inequality has contributed to what he called a “growing feeling of us and them”.