Consumer confidence picked up slightly but remained low in the final quarter of 2022
Consumer confidence in Northern Ireland increased modestly in the fourth quarter of 2022 but remained low as the impact of higher prices on household finances continued to weigh on sentiment.
The Danske Bank Northern Ireland Consumer Confidence Index rose slightly to 95 in 2022 Q4, up from 92 in the third quarter of the year but below the reading of 134 posted in the fourth quarter of 2021. The survey was carried out in December 2022.
Compared with the previous quarter, people reported feeling more confident about their future finances and expected spending on expensive items but less confident about their current finances and job security.
Inflation is expected to decline during 2023 but it will likely take some time for it to return to the 2 percent target. As such, and when combined with relatively low confidence levels, consumer spending is projected to remain under pressure.