Majority of Irish consumers delaying large purchases due to financial concerns - Deloitte Ireland report has been saved
Majority of Irish consumers delaying large purchases due to financial concerns - Deloitte Ireland report
Inflation concerns rise to 86% - the third highest rate of 23 countries surveyed
13 April 2022
13 April 2022: The number of people in Ireland delaying large purchases has increased by 5% in the last month to 52%, while the amount of those concerned about the rising cost of everyday prices has jumped another 4% to 86%, according to Deloitte’s State of the Consumer Tracker.
More than 40% of those surveyed are extremely concerned that Russia’s invasion of Ukraine will impact their everyday lives, with a further 27% showing moderate concern– meaning this is an issue for almost seven in 10 people living here, the survey shows.
Over 40% of people also stated that the war has had a moderate to major impact on their plans to travel internationally, while roughly the same number believe it has majorly impacted the price they pay for groceries. In addition, over 90% of consumers said it has had a significant impact on the price they pay to fuel their cars.
Deloitte’s State of the Consumer Tracker is a monthly survey which tracks consumers’ attitudes towards personal wellbeing, financial concerns, travel and hospitality, transport and retail. The results are based on a survey of over 20,000 consumers across 23 countries (1,000 Irish consumers). The most recent data was gathered between and March 24th and March 30th last.
Commenting on the latest results, Daniel Murray, Deloitte Ireland, Partner and Head of Consumer, said:
This is the first tracker where the full impact of the war in Ukraine is evidently affecting consumer sentiment, along with both purchasing power and spending decisions. The terrible ramifications of the situation in terms of its human cost, is of course the primary concern. However, given its broader political and economic effects globally, the invasion is having a much wider impact across society - not least on global supply chains and rising costs of production and goods. People in Ireland are really feeling this impact.
“However, two in three people plan to spend on leisure travel in the next four weeks – which should benefit the domestic economy – and one in five people plan to buy a car in the next six months, with a 5% increase in those intending to purchase an electric model, may be due to the huge jump in petrol and diesel prices .”
Average consumer spending is now €2,654, an increase of €123 on the last wave of the survey, and the largest fluctuation in the series to date (since Sept 2021). Spending on both less, and more, discretionary items has increased - by €59 and €42 respectively.
Financial concerns are continuing to escalate with those planning to delay large purchases increasing for the second time in a row, while the number of people optimistic that the financial situation will improve within three years dropped by 5% to 43%.
There was also a 2% drop, to 42%, of those reporting they are spending more to enjoy today, while those concerned about making an upcoming payment remained static at 28%.
The number of consumers spending more on goods versus experiences is down 4%, for the fourth wave in a row (now 35%). There are also large increases in those reporting concern about the rise in everyday prices, with consumers perceiving higher prices relative to the previous month. These include categories such as groceries (up 7% to 82%, and perceived to have had the sharpest rise); restaurants (up 7% to 68%); alcohol and tobacco (up 5% to 71%) and apparel and footwear (up 5% to 53%).
Travel & Hospitality
Covid-19 safety concerns are plateauing, with slight decreases in safety perceptions in areas such as going to a store (down 5% to 74%), attending in-person events (down 2% to 56%) and taking a flight (down 2% to 55%).
There are increases across the board in consumers planning to travel for leisure in the next three months with most notable increases including: hotels visits (up 3% to 63%), international flights (up 3% to 44%) while 54% of consumers said they would like to travel for business (up 1%), within that timeframe.
More than over one in five people plan to change their car in the next six months, aligning with last month’s figures, but more of these are now planning to purchase electric cars – up 5% to 12%. Of those purchasing, 37% plan to buy a new vehicle, and high maintenance costs are one of the key reasons for this (up 4% to 24%).
Issued by Murray on behalf of Deloitte Ireland
For further information
087 780 6125
About the State of the Consumer Tracker
This monthly study is fielded using an online panel where consumers 18 years of age and older are invited to complete the survey (translated into local languages) via email. It is fielded in 23 countries (targeting 1,000 respondents per country/wave). The survey field period was 24 to 30 March 2022.
At Deloitte, we make an impact that matters for our clients, our people, our profession, and in the wider society by delivering the solutions and insights they need to address their most complex business challenges. As the largest global professional services and consulting network, with over 345,000 professionals in more than 150 countries and territories , we bring world-class capabilities and high-quality services to our clients. In Ireland, Deloitte has approximately 3,000 people providing audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. Our people have the leadership capabilities, experience and insight to collaborate with clients so they can move forward with confidence.
In this press release references to Deloitte are references to Deloitte Ireland LLP. The information contained in this press release is correct at the time of going to press. Deloitte Ireland LLP is the Ireland affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NSE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.
Engineer your tech-forward future
Looking to the clouds: are Irish organisations amplifying the transformational value of cloud technology?
Our report reveals the latest data on the state of cloud adoption in Irish organisations across a range of industries.