Northern Ireland consumer confidence edges higher in second quarter, Danske Bank finds
The index rose by one point to 132, with consumers reporting greater confidence in both their current financial position and their financial outlook.
Consumer confidence in Northern Ireland improved slightly during the second quarter of 2026, according to the latest Danske Bank Consumer Confidence Index.
The index rose by one point to 132, with consumers reporting greater confidence in both their current financial position and their financial outlook.
Just over one in five (21%) respondents said rising wages had improved their confidence, with pay in Northern Ireland continuing to outpace inflation over the year to June.
However, 41% still identified high prices as the biggest factor weighing on confidence.
The research also found that 36% of consumers expect to cut back on luxury spending this year.
While still significant, Danske Bank said this marked an improvement on 2022 and 2023, when around half of respondents expected to reduce discretionary spending.
The strongest improvement was seen among 18 to 24-year-olds.
Hannah Martin, chief economist at Danske Bank, said: “Our Consumer Confidence Index has consistently shown that people are most influenced by direct impacts on their household finances.
“Higher prices and rising borrowing costs have played an important role in shaping confidence. This means that even a modest upward movement in inflation this year could impact on households that have already faced several years of elevated increases in living costs.
“The future path of inflation and interest rates are key watchpoints on how confidence will be impacted in the second half of the year.”
The biggest quarterly improvement came in perceptions of current household finances compared with 12 months ago, which rose by six points.
However, confidence in job security over the next year fell by four points despite continued strength in the labour market.
Martin added: “With pay in Northern Ireland outpacing price rises over the year to June, some consumers may have felt a little more money in their pocket.
“It is encouraging that a fifth of people surveyed said rising wages were positively impacting sentiment.
“But we can’t forget that between June 2021 and June 2026, the cost of many essentials across categories that measure food, non-alcoholic beverages, housing, water and fuel, have risen by around 40%.”
She concluded: “With recent increases in prices largely driven by global events, it is not surprising that a larger proportion of consumers have reported that global risks were the main factor weighing on their confidence (17%).
“These global factors will continue to play an important role in shaping inflation and interest rate decisions, and so will be key in determining consumer confidence.”
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