Irish consumers spent almost £40 billion (&€8364;51 billion) on goods and services last year, according to data released by the Central Statistics Office yesterday. The figures are contained in the latest National Income and Expenditure data for 2000 which give a breakdown of consumer spending last year.
The £40 billion figure was up 15 per cent from £34.7 billion in 1999 and from £31 billion in 1998. When the effect of price increases are stripped out there was a 9.9 per cent rise in personal spending last year.
The figures show that the largest category of personal spending was on food, drink and tobacco, which at £10.5 billion accounted for just over a quarter of total consumer spending. This was followed by miscellaneous goods and services such as professional and other services, at £7.2 billion, and housing at £6.5 billion.
Taxes on personal income and wealth increased to £10.7 billion last year from £9.5 billion in 1999. The tables show that spending on alcoholic beverages and tobacco increased by 13.7 per cent last year, while spending on housing, fuel and power rose by 18.7 per cent at current market prices. Spending on transport and communications was up 20 per cent, while spending on clothing and footwear rose by 16.8 per cent. Spending by Irish residents outside the State increased by 21.9 per cent to £1.9 billion.
When the impact of price increases over the year are stripped out, the rise in consumer spending on alcohol and tobacco fell to 5.7 per cent. Buoyant consumer spending last year was driven by strong employment growth, increases in real pay and reductions in personal tax rates.
The latest CSO figures confirm preliminary data released in early July which showed that the Irish economy grew at a rate of 11.5 per cent last year.
They also show growth of 11.5 per cent in Gross Domestic Product between 1999 and 2000 and a slower 10.4 per cent growth in Gross National Product.
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