Consumer Confidence in NI fell in the third quarter due to greater concerns about spending, finances and job security

The Bank’s quarterly Consumer Confidence Index fell by 18 points to 123 in the third quarter of the year from 141 in the previous quarter and 128 in the same period of 2024, as people also said they were less confident about job security and expected spending on high value items than they were in the second quarter of 2025.

Danske Bank’s survey of 1,000 people across Northern Ireland in September this year found that higher prices and the performance of the local economy, as well as ongoing global risks, weighed down on confidence.

Many people were unable to say what positively impacted confidence, but for those that could, rising wages was identified as a positive driver of sentiment.

Danske Bank Chief Economist Conor Lambe said: “After holding up relatively well against the uncertain economic backdrop during the first half of this year, consumer confidence has now fallen back.

“In the third quarter of 2025, the impact of higher prices on household finances was once again the most significant factor that dragged on confidence levels. Forty-one percent of survey respondents identified it as the factor which had the largest negative impact on sentiment, up from 38% in quarter two.

“In September 2025 – the month our survey was conducted – the UK inflation rate was 3.8%. Over the four years since September 2021, the inflation rate has only been at or below its 2% target on three occasions.”

People’s confidence about their current financial position decreased by 26 points over the quarter to 116, the lowest reading since the first quarter of 2024.

Confidence relating to future finances also decreased over the quarter and the year, down 17 points from the second quarter to 151 and 13 points lower than in the same period of 2024.

Confidence about job security also declined, with the reading of 109 coming in seven points lower than the previous quarter and five points weaker than in the third quarter of 2024.

Sentiment related to expectations of spending on high value items fell by 23 points over the quarter. However, when compared over the year, confidence around expected spending on expensive items increased by seven points.

The survey also showed weaker sentiment relating to peoples’ savings expectations, with that measure down 15 points from the second quarter at 157.

Conor Lambe added:

“Looking forward, with the impact of higher prices continuing to weigh heavily on sentiment, how quickly inflation returns to its target and the stability of the rate of price rises once it does, will be important watchpoints for consumer confidence in the future.”