Heatwave credited for biggest sales hike in two years

IRELAND’S hot spell caused a shopping frenzy as the country saw its biggest increase in consumer spending in two years.

The household sector made up the biggest chunk, with a 13% yearly increase, showing barbecues and garden appliances flying off the shelves during our sizzling summer.

The tourist sector also saw significant growth as people chose staycations in the Emerald Isle, with hotels, restaurants and bars reporting a 10% surge.

Figures released by Visa show June saw a 1.8% rise in spending compared to the previous month, making up a 5.5% yearly increase.

A rise like that had not been recorded since July 2016, indicating a positive outlook for the market. Andrew Harker, chief of marketing firm IHS Markit, said: “The heatwave in Ireland helped boost consumer spending in June, resulting in the strongest expansion for almost two years.

“With the good weather continuing into July, consumer confidence at the highest for nearly two-and-a-half years and unemployment at the lowest in more than a decade, the stage is set for further increases in spending as the second half of 2018 begins.”

The figures relate to both face-toface and digital transactions, although the latter saw its expansion slow to a three-month low in June.

Face-to-face transactions, however, surged 5.4%, their strongest rise since January.

Other areas that saw increased spending were clothing (up 5%), transport and communication (up 7%) and recreation and culture (up 4.5%).

Visa boss Philip Konopik said: “The good weather benefited the Irish high street in particular, with face-to-face spending marking the strongest increase since January.”