Visa: Irish consumer spending fell in October
The latest figures in Visa's Consumer Spending Index have been published, showing a decline in several segments and marginal growth in others; in short, retail has everything to play for this Christmas shopping season.
18 November 2019 | 0
Visa has published the latest figures in its Irish Consumer Spending Index, which measures expenditure across all payment types and sectors, thus gleaning insight into consumer behaviour and economic trends. According to the latest report, spending fell during October. The decline was less marked than that seen in September (1.4% against 2.1%), although it remains a cause for concern as expenditure has now fallen on a monthly basis in five of the past six months.
Individual segments saw differing results overall in the period. Face-to-Face spending continued to fall at roughly the same pace it has seen in recent months, down -2.6%, while Clothing & Footwear posted the sharpest fall in the period, seeing a decline of -3.6%. Recreation & Culture spending decreased for the first time in six months (-2%), with further reductions in Food & Drink (-0.3%) and Miscellaneous Goods & Services (-3.3%).
Meanwhile, several sectors saw a boost in spending, including the ever-climbing E-Commerce, where spending was up by 0.7%. Household Goods was the strongest performer, registering a 1.8% year-on-year expansion, while Hotels, Restaurants and Bars, Transport & Communication and Health & Education all enjoyed marginal increases (+0.8%, +0.6% and +0.6% respectively).
Andrew Harker, associate director at IHS Markit said that the subdued spending trends are attributable to a lack of confidence among consumers. “Retailers will be hoping that the upcoming Black Friday and Christmas periods can provide a shot in the arm to households,” he said, “and help support a recovery in spending.”