Level of consumer cutbacks revealed in credit union consumer sentiment survey

Many people have cut back on necessities such as heating or food, the latest Credit Union Consumer Sentiment index has found. 

However, consumer sentiment improved slightly in October as consumers took some reassurance from Government steps introduced in Budge 2023 to help households cope with the cost of living crisis.

The Credit Union Consumer Sentiment index climbed to 46.1 in October from 42.1 in September, up slightly on an 11.3-point decline from August.

The Credit Union Consumer Sentiment Index for October contained a special question focused on the extent of spending cutbacks being undertaken by Irish households.

The responses appear to show that cutting back is now a key feature of consumer behaviour and is set to continue for the rest of the year.

Just 7pc said they are not making cutbacks because they have sufficient funds.

"Wealthier and Dublin-based consumers tended to show less widespread cutbacks in this area than other groupings," the credit union survey noted.

It also found that two in five consumers said they were cutting back on holiday spend.

One in three consumers said they would cut back on gift-buying this Christmas

However, just one in eight consumers at cutting back on child-related spending.

The survey also found that a third of consumers are cutting back on their grocery spending.

However, 6pc say they are unable to make cutbacks in this area as they have already reduced their spending on food and other household staples to a minimum.