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Planned monthly spend among consumers in Ireland down by 10% - Deloitte report

Ireland ranks third-highest of those surveyed for concern about inflation

12 May 2022

12 May 2022: The average planned monthly spend among consumers in Ireland has decreased by 10%, according to Deloitte’s latest State of the Consumer Tracker. The survey found that consumers in Ireland are 10% more concerned about inflation than the global average, with more than half (56%) worried about their level of savings.

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 April 21st and April 27th last.

Commenting on the latest results, Daniel Murray, Partner and Head of Consumer at Deloitte Ireland said:

 

The results of the latest tracker show the far-reaching consequences of the harrowing situation in Ukraine for many countries, including Ireland. Fresh from the adverse impact of Covid-19 restrictions, consumer confidence in Ireland is yet again facing substantial headwinds, this time in the form of rising inflation which is causing remarkable increases in the cost of everyday items. 

 

"Consumers in Ireland are notably less optimistic about their finances than the global average, with significant increases in the cost of essentials inevitably leading to a contraction in planned discretionary spend."

 

Consumer confidence & spending intent

Following a brief plateau, consumer confidence in engaging with businesses and services in person has increased since the previous wave of research, conducted four weeks prior: 80% feel safe going to the store (up 6% since the previous wave); 80% feel safe engaging in one-to-one services such as hairdressing (up 5%); 78% feel safe going to a restaurant (up 7%); and 66% feel safe attending in-person events (up 10%).

Despite this, financial concerns among consumers in Ireland have remained constant or lessened only slightly since the previous wave: 26% are concerned about making upcoming payments (down 2%); 52% say they are delaying large purchases (no change); 44% are optimistic that their personal financial situation will improve within the next three years (up 1%); and 56% are concerned about their level of savings (no change).

In fact, of the 23 countries surveyed, Ireland is the third-most-concerned about inflation, with 85% of consumers in Ireland saying that they are concerned about inflation, compared to the global average of 75%.

Consequently, the average planned monthly spend among consumers in Ireland has decreased by a significant 10%, from €2,654 in the previous wave to €2,396. Consumers’ intent to spend on non-discretionary items has decreased by 9%, while their intent to spend on discretionary items has decreased by 11%. Non-discretionary items dominate spending intent, at 68% of consumers’ planned monthly spend.

 

Travel & Hospitality
There is increased confidence among consumers in leisure travel and hospitality, with 79% feeling safe staying in a hotel (up 8%) and 64% feeling safe taking a flight (up 9%). 48% plan to take an international flight within the next three months (up 4%); 44% plan to travel by rail (up 5%); 40% plan to rent private holiday accommodation (up 3%) and 29% plan to take a domestic flight (up 3%).

58% of consumers say that they are likely to travel for business in the next three months, an increase of 4% on the previous wave.

 

War impact
Consumers in Ireland perceive a significant impact on costs from the ongoing war in Ukraine, with the most-impacted costs being those of petrol/diesel (93%) and utilities (93%), followed by groceries (91%). 82% of consumers are seeing an impact on the availability of certain grocery items, while 59% state that the war has impacted upon their plans to travel internationally.

 


Ends

Issued by Murray on behalf of Deloitte Ireland

For further information:

Iona McBirney
087 952 5629
imcbirney@murraygroup.ie

Olwyn Flanagan
Deloitte Ireland
083 1737585
Oflanagan@deloitte.ie

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 21 to 27 April 2022.

About Deloitte
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 to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more

 

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