Nationwide protests impact consumer sentiment

Nationwide protests impact consumer sentiment

Protests against rising fuel costs have spread across the UK and Ireland. In Northern Ireland, a slow-moving convoy of dozens of vehicles took to the streets, mirroring similar actions in the Republic of Ireland where hundreds of petrol stations have run out of fuel. This comes amidst a global backdrop of surging energy prices. Meanwhile, in the U.S., The Conference Board's Consumer Confidence Index surprisingly rose in March, despite respondents' concerns about the war in Ukraine and rising gas prices.

The fuel protests could disrupt consumer spending, particularly in the UK and Ireland, as households face higher transportation costs. Retailers and travel companies may see reduced demand, while fuel retailers could benefit from increased sales. In the U.S., the unexpected rise in consumer confidence suggests resilience in consumer spending, which drives two-thirds of the economy.

Next, watch for the following catalysts: the outcome of the fuel protests in the UK and Ireland, which could ease or escalate; the U.S. Consumer Confidence Index release for April, due on April 26, to confirm the trend; and the U.S. retail sales data for March, scheduled on April 14, for signs of any impact on consumer spending.