Most Irish consumers eye major purchase by the end of next year
Published 09/08/2016 | 08:19
Most Irish consumers are planning a major financial purchase by the end of next year, new research has shown.
Three quarters of Irish shoppers are looking to spend big by the end of 2017 with a holiday named as the most common purchase, according to the Vision-net.ie Recovery Index.
A used car was listed as the second most common purchase while 36pc of those quizzed expect to make a major purchase by the end of this year.
The survey of 1,000 consumers found a reluctance to take on debt with just 15pc opting to use a loan as the sole means of finance.
The research also finds those aged between 35 and 54 may find accessing finance difficult due to existing debt and taxation burdens - particularly those that were hit by high pre-crash house prices.
Just over a third of respondents said they will use a combination of loans and savings to fund their planned purchase with just under half relying solely on their savings.
Vision-net.ie managing director Christine Cullen said the research shows the slow return of confidence to the Irish economy.
"Following a period of financial restraint after the financial crash, Irish people now feel secure enough to begin making significant purchases again, like holidays and cars.
“Having said this, there appears to be a deep reluctance among consumers to take on debt, with only 15% willing to use a loan as the sole means of financing their purchases.
“This suggests consumers are still very cautious about their long-term financial prospects. This is likely explained by a combination of factors, including more restrained earning potential, existing debt and tax burdens and uncertainty in the broader macro-economic climate, like Brexit," Ms Cullen said.
The Amarach research also found that females are more likely than males to use savings with men more likely to take out a loan.