Recovery in Irish consumer spending continues as retail sales volumes rise
The recovery in Irish consumer spending is continuing into 2017, with retail sales volumes up by 0.7pc in March, and up 6pc on the year. The figure excludes car sales.
Sales volumes for the first three months of the year were up 2.1pc on the final three months of 2016.
Overall, the country is well on track for at least a 3pc rise in Irish consumer spending in 2017. With both employment and wages increasing by 3pc, total household incomes are growing by close to 5pc.
Also, with Irish consumer price index inflation subdued at 0.7pc in March, Irish households’ real incomes are growing at a rapid pace.
While sterling’s depreciation is clearly hurting UK consumers, the opposite is happening in Ireland. Close to one-third of Irish consumer goods are imported from the UK and sterling’s depreciation has contributed to a 2.6pc annual decline in Irish retail prices which will help households’ real incomes.
However the sterling’s weakness has depressed Irish retail motor trades, down 4.5pc on the year.