Consistent growth in shopper spending

SHOPPERS’ spending has been on the rise on an annual basis every month for almost a year and a half, new figures show.

Spending was up 2.3% year-on-year in July, down from the 5.5% increase seen in June ‘but still signalling a solid pace of growth during the month’, credit card Visa’s Irish Consumer Spending Index says.

The biggest jump was in online sales, up 4.9% year-on-year, which was almost five times the growth of traditional shops’ trade, up by only 1%.

Visa’s Ireland manager Philip Konopik said: ‘The ongoing rise in Irish consumer spending reflects the buoyancy of the economy and while the rate of growth was weaker than previous months, July expansion is typically weaker as it is normally a period when retailers hold sales.

‘Last month’s Consumer Price Index also helps to explain marked growth in certain categories such as transport and communication and hotels, restaurants and bars, with the CSO highlighting a rise in the price of air fares, hotel accommodation and food and drink on licensed premises.’

Andrew Harker, of IHS Markit which monitors spending, said: ‘Growth in Irish consumer spending took a step back from the rapid expansion seen in June, with July registering a more modest increase. That said, household expenditure has now risen in 17 consecutive months, with e-commerce spending driving the latest expansion.

‘Slower growth was relatively widespread, with no sectors seeing a pick-up in the pace of increase. Clothing and footwear was the only category to see an outright fall in spending, however.’

The figures were released yesterday as a separate report revealed the sweltering heatwave that swept the country recently saw Irish retailers’ sales grew by 3.4% in the second quarter of the year.