Ireland’s Credit Union Consumer Sentiment Index fell to 56.7 in March 2026 from 65.2 in February, its lowest reading in three years, as mounting tensions in the Middle East undermined economic confidence. This was also the sharpest monthly decline since April 2025, when worries about US tariffs unsettled sentiment.
The latest drop points to a clear weakening in consumer confidence, rather than an outright collapse. Households have become notably more cautious, especially regarding future spending, amid growing concerns about the economic fallout and rising energy costs. The softer reading mirrors developments across the wider euro area, where consumer confidence has fallen to its lowest level since late 2023.
Despite the gloomier mood, Ireland’s central bank has revised its inflation projections higher, now expecting price growth of 2.9% in 2026 and 2.6% in 2027, largely due to energy-related pressures. It anticipates only a modest easing in overall economic growth. The economy expanded by a robust 4.9% in 2025, even as consumer sentiment remained muted throughout the year.