There are some reasons why Irish consumers might be expected to feel a little more positive heading towards the end of 2026. Budget 2027 promises to put more money into many household pockets, employment remains strong and there are even some signs of greater stability in the housing market.

Yet the latest RED C Consumer Mood Monitor suggests that consumers are not feeling much better about things.

Confidence in the Irish economy has barely changed since July, with the Consumer Mood score at -62 (70% expect the economy to get worse over the next six months compared with just 8% that expect it to improve), compared with -63 in July. However, it remains significantly weaker than a year ago, when the score stood at -49. The recovery from April’s low of -81 has stalled. Views of the world economy are similarly downbeat at -74, unchanged since July and well below the -59 recorded a year ago, as continued geopolitical uncertainty weighs on the outlook.

The cost of living remains central to this caution: nine in ten consumers (90%) expect it to worsen over the next six months, while just 3% expect an improvement. There has been some easing in expectations around grocery and household energy spending, but this has not translated into a wider sense that the cost-of-living squeeze is ending. Fuel costs remain a concern, while consumers continue to expect everyday living costs to rise.

This pressure is increasingly visible in how consumers view their own finances. Almost seven in ten (69%) now expect their disposable income to worsen over the next six months, compared with just 8% who expect it to improve. This is despite the relatively generous Budget package, suggesting that the immediate pressure of everyday costs continues to outweigh expectations of future relief.

And consumers appear to be responding accordingly. Spending expectations have weakened across consumer goods and services, out-of-home entertainment and holidays. Borrowing provides another source of pressure, with 71% expecting the cost of borrowing to worsen and just 3% expecting an improvement. Against the backdrop of higher interest rates, that gives households another reason to be cautious about larger financial commitments.

The wider environment matters too. International instability continues to feed through into energy costs and economic confidence at home, while the prospect of further industrial unrest adds another layer of uncertainty as we move towards 2027.

For brands, this does not necessarily mean consumers will simply stop spending. But it does mean purchases are likely to come under greater scrutiny. Making choices easier, providing flexibility and clearly demonstrating why a purchase is worthwhile will become increasingly important. At a time when consumers have little control over many of the pressures around them, brands can also provide something valuable in its own right: certainty and reliability.

Download the Consumer Mood Monitor