Irish Consumers Spending More Despite Brexit
Further evidence of recovery in Ireland has been provided by the Visa Consumer Spending Index (CSI) pointing to increased consumer spending throughout July. Expenditure across all payment types (cash, cheques and electronic payments) was up +6.4% year-on-year, a slight increase on the already upbeat figures for June (+6.0%).
Household spending has risen throughout the 23 months of the series so far, with the latest increase above the average for this period. The figures suggest consumer confidence has not been immediately affected by Brexit, despite ongoing concerns and largely pessimistic speculation regarding the long-term effects of the UK vote on the Irish economy.
Much of the increase is attributable to spending via eCommerce, which rose +9.9% year-on-year, though retailers should be bouyed by news of High Street street expenditure rising at a faster pace than in June (+4.8% from +1.9%). Senior Economist at Markit, Andrew Harker, said: “There was some positive news for the high street as face-to-face expenditure rose at a faster pace, and sectors such as Hotels, Restaurants & Bars and Clothing & Footwear appear to have particularly benefitted from this."
On a sectoral basis, Recreation & Culture categories posted the fastest rise in spending, with double-digit expansion in July (+11.5% year-on-year). Improved rates of expansion were also seen in the Food, Beverages & Tobacco, Clothing & Footwear and Hotels, Restaurants & Bars categories, with the former posting its strongest increase since February. In contrast, rates of growth in the Household Goods, Transport & Communication and Health & Education sectors dipped slightly from June, but remain solid.
Philip Konopik, Ireland Country Manager at Visa, said: "While there is some economic uncertainty at the moment, we have not seen an impact on Irish consumer expenditure as yet, with household spending continuing to rise. The overall rate of growth in July was slightly stronger than the 23-month series average and all sectors saw an increase in spending during the month."
© 2016 - Checkout Magazine by Ingmar Kiang