Ireland’s Credit Union Consumer Sentiment Index dropped to 56.7 in March 2026 from 65.2 in February, marking its lowest level in three years as escalating Middle East tensions weighed on economic confidence. The decline was also the biggest monthly drop since April 2025, when US tariff concerns rattled sentiment. “The fall reflects a marked decline in consumer confidence rather than a complete collapse, given the scale of the drop is broadly similar to that seen almost a year ago”, the survey’s authors said. Households are becoming more cautious, particularly in spending plans, as concerns over economic fallout and rising energy costs intensify. The reading aligns with broader euro area trends, where consumer confidence fell to its lowest since late 2023. Still, the central bank raised inflation forecasts to 2.9% for 2026 and 2.6% for 2027 due to energy pressures, while expecting only a modest slowdown in growth. The economy expanded by 4.9% in 2025, even as sentiment stayed subdued.
