Irish consumer spending is forecast to increase by 3% by the end of 2018, with further increases in 2019 and 2020.
This comes from the latest Consumer Market Monitor provided by the Marketing Institute of Ireland in collaboration with the UCD Michael Smurfit Graduate Business School.
The report found that consumer spending grew by 3.6% in the first half of 2018, and is carrying a strong momentum into the final quarter of the year.
The report attributed to this boost in spending to the continuing gains in employment and incomes.
The increasing numbers of people employed, as well as increases in hours worked, is leading to a substantial uplift in the amount of disposable income circulating in the economy.
It also found that consumer confidence in Ireland is strong, and significantly higher than in the UK and the rest of Europe, despite having fallen somewhat as Brexit continues to play out.
These concerns do not seem to be dampening spending, however, as both retail sales and spending on services are continuing to be strong.
“Despite the uncertainty around the impact of Brexit on our economy, Irish consumer confidence is significantly higher than our European neighbours and there has been no apparent dampening of consumer spending, as both retail sales and spending on services have remained strong,” said Tom Trainor, Chief Executive of the Marketing Institute of Ireland.
“However, we cannot take this for granted in the period ahead as Brexit plays out,” he added.
Retail sales (excluding the motor trade) were very strong in 2017, up by 5.8% for the year in volume terms, and by 3.8% in value, and have continued to grow in 2018, up by 4% in volume and 3% in value in the first nine months of the year.
While all retail categories reported good growth, supermarkets and other food stores also performed well in the third quarter, according to the report, as did pharmacies and department stores.
Supermarket sales increased by 5% in volume, and by 4% in value. Greater food sales increased by 5.1% in volume and by 4% in value.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.