More people in Ireland are feeling positive about the year ahead than was the case this time last year according to the latest edition of PTSB’s Reflecting Ireland, the bank’s quarterly research series of consumer behaviour and attitudes, conducted on the bank’s behalf by Core Research.
According to the newest edition of Reflecting Ireland, as consumers look towards 2025, 49% of respondents are positive about living in Ireland – up from 44% a year ago and 39% two years ago – and the percentage describing themselves as negative is down over those two years from 61% (end 2022) to 51% now. The research finds that while most priorities remain the same, there are some shifts in hopes and expectations and spending intentions for the year ahead.
In a series of questions on the economy, when asked whether they thought the economic situation of the country was likely to improve, remain the same or get worse over the next 12 months, the research in Q4 2024 found that 38% felt it would stay the same, 21% felt it would improve and 36% thought it would get worse. However this is an improving position compared to Q1 of this year when 34% thought it would stay the same, 20% thought it would improve and 43% thought it would get worse.
Additionally, in response to questions on their personal finances, 25% of respondents said they expected to be better off in twelve months. That figure was 23% a year ago, although it is down from 29% in Q3 of this year.
This more positive attitude towards personal finances was also reflected in a series of questions about how people feel on a number of issues with 56% describing themselves as confident about managing their finances in the year ahead;
And in respect of specific items of expenditure, there was a fall of 13% (from 60% to 47%) in the percentage of people who said they would cut back on energy spending and there was a drop of 15% in the percentage who said they would cut back on the cost of their weekly grocery shop (down from 53% to 38%).
Similar patterns have been recorded for people planning to cut down on going to restaurants (down from 62% to 51%); pubs (down from 56% to 47%); taking holidays in Ireland (down from 51% to 38%) and taking holidays abroad (down from 49% to 35%).
Other findings include:
Significant differences among age groups
PTSB’s research found the “squeezed middle” (45-54 year olds) feel under the most financial pressure of all age groups as they look towards 2025.
Those aged 45-54 are the least likely to expect to have money left over at the end of the month, to be able to handle a major unexpected expense or to feel confident about managing their finances in 2025.
The research found the numbers of people saying they expect to:
|
|
have money left over at the end of the month |
be able to handle a major unexpected expense |
feel confident managing day to day finances |
|
18-24 |
55% |
43% |
62% |
|
25-34 |
52% |
50% |
60% |
|
35-44 |
44% |
45% |
54% |
|
45-54 |
37% |
35% |
43% |
|
55+ |
42% |
49% |
62% |
However, the next age group up, those aged 55+, are the most likely to believe Ireland is a good place to grow up in, to grow old in, and that the country is generally going in the right direction. They are the most optimistic age group about living in Ireland in 2025.
Climate change
Leontia Fannin, Chief Sustainability & Corporate Affairs Officer at PTSB, said:
“Our research shows welcome trends in terms of a positive 2025 outlook and increasing confidence about Ireland’s direction of travel.
It’s positive to see people are less likely to cut back on spending than was the case in recent years. This bodes well for households and the small businesses throughout Ireland that depend on them as we enter 2025.
It’s also very encouraging to see continued strong support for measures that can help to tackle the climate challenge and we’re also seeing a positive uplift in those prepared to make an investment for a greener future.”
Claire Cogan, behavioural scientist at BehaviourWise, said:
“Once again we’re seeing very positive sentiments being expressed on Ireland being a good place to grow up and to grow old, but there are striking differences among age groups.
It’s clear that younger age groups are struggling with the cost of renting or owning a home and this is a major influence on how they perceive life in Ireland and the general direction the country is taking. They are also the least likely to feel they will benefit from changes announced in Budget 2025.
In addition, we’re seeing renewed evidence that the “squeezed middle” continues to feel financial pressure; this may be due to the costs that are typically faced by the 45-54 age cohort as they may balance costs including education, housing and caring for family members alongside the day-to-day costs of living.”
Note to Editors
PTSB’s Reflecting Ireland research is conducted every quarter and is based on an online survey of 1,000 adults across Ireland. The sample was nationally representative of the population based on age, gender, social class and religion. Fieldwork was conducted on 23 October – 3 November 2024.
