Irish consumers are saving less and spending more
Irish consumers are saving less and spending more, but cuts to "punitive" taxes need to be made to cement the retail recovery, industry body Retail Ireland has demanded.
In its pre-Budget submission, Retail Ireland said it expects consumer spending will rise 1.9pc this year and by 2.9pc in 2015.
It said consumers are more upbeat than they have been in years, splashing out on new cars and finally getting around to doing up their homes.
Retail Ireland - part of industry group IBEC - said that the savings rate here soared to 16.1pc in 2009 as hard-pressed consumers put money as taxes soared and they feared for their jobs.
But Retail Ireland said that savings rate has now dropped dramatically and people are now putting aside just 8pc of their disposable income.
A cut in excise duty, income tax and new incentives for retailers to develop vacant lots in town centres are now being demanded by Retail Ireland.