Irish consumer sentiment falls to three-year low amid Middle East conflict

DUBLIN, March 27 (Reuters) - Irish consumer ​sentiment fell ⁠in March to its ​lowest level in three years as conflict in the Middle Eastheightened ​economic ‌uncertainty, a survey showed on Friday. The Credit Union Consumer Sentiment ⁠Survey dropped to 56.7 in March ⁠from 65.2 in February, ​marking the biggest monthly drop since April 2025, when U.S. tariff concerns were rife.

The fall reflects a marked ​decline ‌in consumer confidence rather than a complete collapse, given the scale of the drop is broadly similar to that seen almost a year ago, the survey's authors ​said. The survey highlighted a more cautious approach to ‌consumer spending, with buying plans most affected as consumers took fright at the increased ‌risk of economic fallout, and more immediate challenges such as rising energy costs. The Irish reading is consistent with consumer ​confidence across the euro zone, which fell to its lowest level ‌since late 2023 in March. Ireland's central bank on Thursday raised its inflation forecast to 2.9% for this year and ⁠2.6% ⁠for 2027 due to the energy ‌shock but said it expects only a slight slowdown in economic ​growth next ​year thanks to strong momentum. The domestic ‌economy grew by 4.9% in 2025, even though consumer sentiment remained subdued throughout the year.