In the latest Dentsu Pulse report, 1,000 Irish adults were interviewed about how they felt amid continued economic uncertainty. When people were asked to pick the top three emotions they have been experiencing lately, a mixed, uncertain picture emerges. Although happy is the top chosen emotion, most respondents chose a combination of positive and negative emotions which indicates the underlying uncertainty people are feeling this year.
Over half (58 per cent) said they were feeling either uncertain or anxious.
The top concern was the cost-of-living with women (69 per cent) and those aged under 35 (70 per cent) and aged 35-44 years (77 per cent) much more likely to be worried. Healthcare and housing are other big concerns with an age differential there. Housing and employment are of much higher concern to those aged under 35 (44 per cent and 29 per cent respectively). In contrast, healthcare is a bigger concern for those aged 55+ (46 per cent).
Men are more concerned about geopolitics than women – 37 per cent versus 29 per cent.
Looking to the impact of consumer sentiment on shopping behaviour, uncertainty has resulted in greater levels of research prior to buying products, while 78 per cent of people say they have changed the way they shop. Adults are most likely to have adjusted the amount that they purchase or have moved to cheaper retailers or brands. Those feeling negative or uncertain are more likely to have made financial behaviour changes – 87 per cent.
Looking across the ways people purchase, people are spending more on groceries than last year, as seen in the consumer price index (CPI). However, there is a significant proportion of people spending less on items that would normally be seen as discretionary, like clothes, nights out and alcohol. A higher proportion of people experiencing negative emotions or feeling uncertain said they were spending less on all categories, apart from groceries.
Discretionary
Despite media attention moving from cost-of-living to issues like housing and immigration, household finances are still top-of-mind for most consumers. People are holding off on discretionary spending or going for cheaper retailers or brands rather than relying on credit or ‘buy-now, pay later’. With restaurant and café closures, the number of people spending less than a year ago in discretionary categories shows the impact sentiment can have.
