Monday 23 April 2018

Consumer spending growth stalls

Picture posed
Picture posed
Ellie Donnelly

Ellie Donnelly

Irish household spending rose 2.5pc year-on-year in August, according to the Visa Ireland Consumer Spending Index. However the latest expansion remained weaker than the average since the series began in September 2014.

The increase in spending was driving by ecommerce which increased 11.5pc year-on-year, according to the spending index which measures expenditure across all payment types.

In contrast, face-to-face expenditure continued to underperform, seeing a decline in spending for the 11th successive month. August's rate of decline in face-to-face expenditure, at 2pc year-on-year, was also the most marked since May.

The best-performing sector in August was household goods, with spending up 10.8pc. Clothing and footwear spending also saw a continued revival, up 5.5pc year-on-year.

Sectors which experienced slower rises in spending were recreation and culture, which saw spending increases of 2.9pc year-on-year, and hotels, restaurants and bars which saw spending increases of just 1pc year-on-year.

August marked a return to growth for the health and education and transport and communication categories, posting solid increases of 5pc and 3.4pc respectively.

The only category not to see a rise in spending was food and drink, where spending was completely unchanged year-on-year. This ended a five-month sequence of rising consumer spending in this sector. "This month's Consumer Spending Index continues to post a picture of positive growth, with eCommerce at the heart of the expansion," Philip Konopik,of Visa Ireland said.

Irish Independent

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