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Consumer spending to surge as wages rise

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Report: Philip Konopik, Ireland country manager at Visa

Report: Philip Konopik, Ireland country manager at Visa

Naoise Culhane

Report: Philip Konopik, Ireland country manager at Visa

Consumer spending is set to hit €111bn this year, buoyed by increases in employment and rising wages.

The hike in Irish households' outlay is expected despite remaining relatively unchanged last month.

Visa's Irish Consumer Spending Index, produced by IHS Markit, showed that household spending declined by just 0.1pc in January, after rising 0.9pc in the traditionally free-spending month of December.

Online shopping was little changed following a strong rise during December, largely on the back of 'Cyber Monday' offers.

Face-to-face spending, however, last month declined by 0.2pc year on year.

"The fractional reductions in both face-to-face spending and online purchases in January reflect the fact that the majority of retailers begin their sales in December now," said Philip Konopik, Ireland country manager at Visa.

The sector of hotels, restaurants, and bars saw the biggest increase in spending during the month, with households' spending on this up almost 5pc.

Clothing and footwear, household goods, and miscellaneous goods and services all recorded a drop in spending, although in each case the decline was less than 2pc.

Wages are predicted to grow by 4pc in 2020 and 2021, according to the latest Consumer Market Monitor from the Marketing Institute and the UCD Smurfit Graduate Business School.

Irish Independent