Economic uncertainty and cost-of-living concerns lead to slightly softer NI consumer confidence

Posted on: 06 Jun 2025

• Economic outlook the main concern but job fears ease slightly

• Household finances still posing problems but cost strains not nearly as intense as a year ago

• Capacity of Northern Ireland consumers to cope with an unexpected bill varies widely 

Findings from the latest quarterly Credit Union Northern Ireland Consumer Sentiment Survey (in partnership with Core Research) shows that Northern Ireland consumer confidence weakened modestly between February and May 2025.
 
The decline in sentiment reflects growing nervousness around a more threatening outlook for the economy and continuing if slightly reduced pressure on household finances. However, Northern Ireland consumers have become a little less negative about the jobs market in the past three months.
 
The tone of the May 2025 sentiment survey doesn’t suggest any dramatic deterioration in the circumstances of Northern Ireland consumers of late. Instead, it might be suggested that the drop in consumer confidence largely reflects disappointment that an emerging recovery in economic and financial conditions appears to have stalled of late and may now seem less likely to continue.
 
Improving incomes and somewhat lower inflation than a year ago mean sentiment is clearly better than in May 2024. However, since the start of this year, a much more threatening global backdrop coupled with a pick-up in living costs suggest that many Northern Ireland households continue to face challenging economic and financial conditions.
 
Alongside the standard questions, the May Credit Union sentiment survey (in partnership with Core Research) asked Northern Ireland consumers how they would cope with an unexpected financial emergency costing £750. This question was also asked in the April 2023 and May 2024 surveys.
 
The responses given to the special question in the May 2025 survey suggest marked variations in the degree to which Northern Ireland consumers could cope with an unexpected bill at present. While fewer Northen Ireland consumers would draw on savings in the event of an unexpected outlay of £750 in now than a year ago, there has been an increase in the number who would pay for such an expense from their current income.
 
The 2025 survey also sees an increase in the number who would meet an unexpected financial difficulty by using their credit card. These consumers tend are more likely to be currently having difficulty making ends meet. As such, the increase in these responses, alongside a further significant number who say they couldn’t handle such a financial emergency at present, suggests many Northern Ireland households continue to face financial strains at present.
 
Speaking on the release of the May data and analysis, Martin Fisher, Northern Ireland Manager with the Irish League of Credit Unions noted; “The May Credit Union Consumer Sentiment Survey reveals the diverse financial realities currently experienced by consumers across Northern Ireland.
 
“The focus on dealing with financial emergences shows that while a significant number feel financially stable and optimistic about the future, many others remain vulnerable to unexpected costs or emergencies. In times of both challenge and opportunity, local credit unions continue to be a trusted source of support for their members, offering dependable help when it’s needed most.
 
“The recent announcement of a public consultation on the reform of credit union legislation is an important first step in enabling credit unions to realise their full potential and deliver even greater services and support to the communities they serve.”
 
The full report with commentary is attached. Key findings include:

• 52% believe the economy will weaken over the next 12 months (up from 48% in February 2025) while 23% believe it will improve (down from 29% in February 2025). Overall, the past six months have seen a general increase in concerns surrounding the

• 39% believe the financial situation of their household is worse now than 12 months ago (versus 36% in February 2025), while 28% believe it has improved (versus 29% in February 2025).

• 30% feel the financial situation of their household will improve over the next 12 months (the same figure recorded in February 2025), while 36% believe it will weaken (versus 34% in February 2025).

• Special question suggests sharp differences in Northern Ireland consumers ability to handle a financial emergency costing £750

  • 38% of consumers would use savings, down notably on 2024

  • 18% would use current income, up markedly from 2024

  • 15% would use their credit card, up slightly from 2024

  • 11% of consumers couldn’t cope with such a bill, down slightly from 2024    

Ends.

 
About the Northern Ireland Credit Union Consumer Sentiment Survey
The Northern Ireland Credit Union Consumer Sentiment Survey is a quarterly survey of a representative sample of 350 adults. Core Research undertake the survey administration and data collection for the survey. This tranche of the survey was live between the 6th and 16th May 2025