Consumer Sentiment Post Brexit A Concern For Irish Economic Outlook
2016.11.01Irish consumer attitudes and concerns to the impact of Brexit, together with current and planned cross border shopping behaviour as a result of favourable exchange rates, may have a significant impact on the wider economic situation for business in Ireland in the future.
The great majority of consumers (72%) in Ireland are concerned over the impact that Brexit may have on the Irish economy, which is itself is likely to be suppressing Irish consumer spending now and in the future. Concern is apparent throughout Ireland, but moreso in regions outside of Dublin, suggesting a possible slowing of the economy outside of Dublin before any impact is felt in the capital.
Of particular concern will be the finding that a relatively large proportion of consumers (29%) are already claiming to be shopping online more from the UK since the changes in exchange rates between sterling and the euro, with almost half (47%) of new families doing so.
The possible future impact of cross border shopping is also likely to be high, with 1in 3 (32%) consumers already suggesting that they plan to make at least one trip cross border to Northern Ireland to shop before Christmas. Planned cross border shopping is highest among those living in border counties, with well over half of all shoppers living in those counties suggesting they will shop cross border – with potentially devastating effects on retailers in those counties. Those in younger age groups with younger children are most likely to suggest they will shop cross border – suggesting toy retailers may be most impacted.
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