Consumer spending accelerates…again
Visa Europe have published the latest result of their monthly Consumer Spending Index, showing strong growth in all areas of spending
11 August 2015
It’s a daily occurrence in the news at the moment: economic recovery this, boom is back that. Suggestion usually follows closely that the recovery may not be stretching to all areas of the economy – many retailers are far from out of the woods, some say – but there is evidence that shows things are looking up.
Visa Europe’s latest Irish Consumer Spending Index has revealed an increase of 6.1% year-on-year for July – the second successive month of growth following an increase of 5.6% in June, and the highest growth since the Index was first monitored in September last year.
When broken down in to separate areas, the Consumer Spending Index is equally encouraging. Household spending increased sharly in a number of areas including hotels, restaurants and bars (+7.9%) and recreation and culture (+12%). Spending on footwear and clothing also showed a strong expansion, recording a year-on-year rise of 7.8% – the ninth consecutive month of growth in the sector.
Online shopping also underwent strong growth, showing a year-on-year increase of 11.4% in July – a slight slowing from June’s growth of 13.5%. Finally, face-to-face spending saw an annual increase of 3.8%, the fastest in the series to date, led by food & drink and household goods sectors.
Visa Europe’s Irish Consumer Spending Index takes card spending and adjusts it for a variety of factors, with the intention of indicating total consumer expenditure. Visa Europe’s country manager for Ireland, Conor Langford, says the latest numbers are a good sign for the Irish economy. “Economic growth has surpassed expectation over the past six months,” he said, “a trend we have been observing in our reports through the period.
“If growth in household expenditure continues, this will be reflected in overall economic performance given that consumer spending accounts for more than 60% of GDP.
The full report can be read at visaeurope.com/newsroom.