27% of consumers can’t afford a holiday this year
As the holiday season begins, 27% of consumers say they cannot afford a holiday this year, compared with 23% last year and 19% in 2021, according to the last Credit Union Consumer Price Index published today.
Based on a survey of 1,000 people, it finds 30% of respondents planning a holiday say cost of living pressures will curb their holiday spending, although 25% say the cost of living crisis will not affect their holiday spend, and 8% says they will spend more as their need for a break is greater.
The monthly survey shows overall consumer confidence marginally better in June, compared with May, even though consumers remain cautious about spending and there is still some pessimism about the future.
Recent well publicised drops in some grocery price items and forecasts of an easing in energy prices, and generally positive news on the employment side were seemingly all factors in the slightly more positive sentiment.
“These developments meant consumer thinking on both past and prospective household financial circumstances improved clearly but cautiously in June,” said economist Austin Hughes in a commentary on the findings.
“As noted previously consumers may sense that the pace of increase in consumers prices may be slowing, but they know it remains well above the pace of income growth for most Irish households.”