Many individuals who have the opportunity to take a break are facing the need to cut back on their holiday expenses. Despite a slight improvement in the Credit Union Consumer Sentiment Index this month, close to one-third of people surveyed stated that they cannot afford a holiday this year. Similarly, a significant proportion indicated that they will not be spending as they did in previous years.
However, the rising inflation and high prices are not deterring these individuals from taking a break, even if it is short and austere. Surprisingly, one in four respondents stated that the cost-of-living crisis will not affect their holiday spending. In fact, 8% of those surveyed said that they plan to spend more on their holidays as a means of escaping the negative financial news.
Economist Austin Hughes, who coordinates the sentiment index, explained that the responses to the holiday-related questions suggest that overall spending will be reduced this year. More people are planning to spend less, marking a reversal in the trend from previous years.
Lower-income individuals were notably more likely to express their inability to afford a holiday. On the other hand, younger respondents found it less difficult to find funds for a holiday, while middle-aged individuals were more likely to report financial constraints. The survey also revealed that those aged between 55 and 64 struggled the most to afford a break, whereas those over 65 were less likely to face difficulties.
Hughes noted that roughly two-thirds of consumers will limit their holiday spending due to the pressures of the cost of living. However, he added that slightly over one-third of Irish consumers still feel financially secure enough to continue their holiday spending.
The main index results showed a slight improvement in consumer confidence this month. The index, compiled in partnership with Core Research, increased from 62.4 in May to 63.7 in June. Although this is a marginal gain, it indicates no significant change in overall sentiment.
Hughes interpreted the response as indicating a slight lessening of concerns that previously depressed sentiment and caused the index to hit a 14-year low in September of last year. Despite the slight improvement, consumers remain cautious.
The improved sentiment is likely influenced by favorable weather conditions and media reports of forthcoming energy cost cuts and reductions in retail food prices. These factors have likely bolstered consumers’ confidence in their household finances.
However, Hughes cautioned that consumers may perceive a slowdown in the pace of consumer price increases, but they are aware that inflation remains high and outpaces most households’ income growth.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
