NI consumer confidence still on the wane
Consumer confidence here is continuing to plummet as people struggle against a backdrop of soaring inflation, financial worries, and fears over their jobs.
The Danske Bank quarterly consumer confidence index plunged to 92 in the third quarter of 2022 – down from 103 in the second quarter of the year and well below the 137 posted in the third quarter of 2021.
On the issue of their future finances, 63% fear things will worsen, with just 15%t expecting an improvement.
Nearly half of those asked (47%) blame their rock-bottom confidence on the impact of higher prices on their household finances including food and fuel bills, while 13% pointed to global risks such the war in Ukraine, and 11% highlighted the post-Brexit trading arrangements in Northern Ireland.
For 35% of those surveyed, society’s adjustment to living with Covid-19 had the largest positive impact on their confidence levels, with 23% unsure of what was making them feel more positive and 14% stating the overall performance of the local economy boosted confidence.
Just 18% of people felt their financial position had improved over the past 12 months, but 56% believed their finances were in a worse position.
Expectations around job security fell over the quarter, with 58% feeling things would remain unchanged (to get better or to worse, it was 12% each).
Danske Bank chief economist Conor Lambe said: “Inflation in the UK is at a multi-decade high and is exerting a significant squeeze on consumer spending power. In September, the month our survey was completed, the annual inflation rate in the UK was 10.1% and it increased to 11.1% in October, more than five times its 2% target rate.
“Beneath the headline figures, price pressures are evident across a wide range of goods and services including household energy, motor fuels and food.”
