Consumer Mindset - July 2025
New stories making an emotional impact
Many stories which strike strong emotional chords occupy the public minds this month, particularly relating to the war in Gaza and strikes on Iran by the US and Isreal, as well as the Boeing 787 airplane crash. Another key story that scores highly on the cultural index is Ireland being the second most expensive country in the EU. These stories are all ones that generate strong feelings of disgust, anger and sadness.
The Affect Heuristic outlines the role that emotions play in how we feel about external factors and make decisions about our lives. With the strength of feeling generated by news stories dominating our consciousness, how are the public feeling about their personal circumstances and the future of the economy?
When we look at how people are feeling, it appears that day-to-day many are ‘flatlining’ emotionally (with no strong peaks or troughs), is this how we are coping in the face of the turbulence?
The direction score has remained low since March this year, with optimism for the future of the Irish economy declining. However, we do see some increases for fun and joy as well as small increases for the level of care in society and our response to social issues. As the aforementioned emotionally resonant news stories dominate our news feed, are the public feeling more impetus to act on social issues?
Sentiment declining
In July, Irish consumer sentiment declined reflecting a growing sense of financial unease and broader global uncertainty. Households across the country continued to feel the pressure of a rising cost of living, with everyday expenses remaining stubbornly high and the lingering effects are still deeply felt in personal finances. This is reflected in an increase this wave in concern for the cost of living.
Geopolitical tensions are also weighing heavily on public sentiment. The ongoing conflict in Gaza has contributed to a heightened sense of global instability, with concerns over humanitarian impacts and potential knock-on effects for Europe’s political and economic environment.
Closer to home, growing uncertainty around trade tariffs from the United States has raised questions about Ireland's economic resilience especially given the country’s strong ties to multinational companies and export-reliant sectors. While the direct implications remain to be seen, the perception of increased volatility in global trade is adding to the public's unease.
Together, these factors paint a picture of a population that is cautious, concerned, and focused on the affordability of day-to-day life. It is a time that calls for reassurance, practical support, and clear communication from brands, institutions and policymakers alike.
