Wednesday 28 September 2016

Irish consumer spending unaffected by Brexit

Published 15/08/2016 | 07:25

Taoiseach Enda Kenny with Britain’s Queen Elizabeth on her historic visit to Ireland. Photo: Tom Burke
Taoiseach Enda Kenny with Britain’s Queen Elizabeth on her historic visit to Ireland. Photo: Tom Burke

Irish consumer spending has thus far been free from the effects Brexit as spending in the second quarter of the year increased by 5pc, new research has show.

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According to the Consumer Market Monitor household debt is now at its lowest since 2006 and coming down by around 2.4pc per year.

The monitor also points to a 7.8pc increase in the sale of services on the same time in the previous year.

The only area that has not reported an increase in sales is property, which has seen sales drop by 7pc this year with no sign of a pick-up in the short term.

UCD Smurfit marketing professor Mary Lambkin, who is one of the authors of the monitor, said the imbalance between consumer spending and property sales need to be addressed.

"Property sales are struggling and there is sign of forthcoming growth in this area. As of May 2016, we have only seen 16,743 sales which is in stark contrast to 48,700 residential sales transactions in 2015.”

Marketing Institute of Ireland chief executive Tom Trainor said Ireland's recovery appears sustainable and broad-based.

"In contrast to the UK’s consumer confidence downward plunge by 8 points to -9 following the Brexit vote, the largest drop in a single period in 21 years, consumer confidence remains strong in Ireland and bodes well for continuing economic activity," he said.

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