Irish consumer spending sees +2.3% year-on-year growth in July

Dublin, 13 August 2018: Visa’s Irish Consumer Spending Index, produced by IHS Markit, which measures expenditure across all payment types (cash, cheques and electronic payments), signalled continued growth of household expenditure during July, albeit at a less marked pace than was seen in June.

Consumer spending rose +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. Household expenditure has now risen on an annual basis throughout the past 17 months.

At +4.9% year-on-year, the rate of expansion in spending via eCommerce was marked despite easing for the third month running. The increase was much sharper than that seen through Face-to-Face channels, where spending was up only slightly (+1.0%).

The Household Goods sector continued to record the sharpest rate of expansion of the eight broad categories, with spending up +8.1% year-on-year in July. Marked increases were also seen in the Transport & Communication (+5.6%) and Hotels, Restaurants & Bars (+5.0%) sectors.

Six of the eight categories registered slower increases in expenditure than in June. Food & Drink spending (+4.2%) continued to rise solidly, while modest expansions were recorded in Recreation & Culture (+0.8%) and Health & Education (+1.2%.)

The only sector to see an outright decline in spending in July was Clothing & Footwear. The -0.7% year-on-year reduction in expenditure in the sector ended an eight-month sequence

of growth.

Philip Konopik, Ireland Country Manager, Visa 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 & Communication and Hotels, Restaurants & Bars, with the CSO highlighting a rise in the price of air fares, hotel accommodation and food and drink on licensed premises.”

Andrew Harker, Associate Director at IHS Markit 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 eCommerce spending driving the latest expansion. Slower growth was relatively widespread, with no sectors seeing a pick-up in the pace of increase. Clothing & Footwear was the only category to see an outright fall in spending, however.”