Consumer spending on the up again last month
New Visa Europe barometer shows spending up by 4% in May
Spending on household goods increased by 8.4 per cent in May compared to the same month in 2014
Spending by consumers in Ireland rose by 4 per cent in May compared to the same month a year earlier but was down 0.3 per cent against April, according to a new survey.
Visa Europe’s latest Irish consumer spending index shows the food and beverages sector benefitted the most as expenditure rose by 9.7 per cent versus 9.1 per cent in April.
Spending on household goods increased by 8.4 per cent in May compared to the same month in 2014 while the clothing and footwear sector saw year-on-year growth of 6.8 per cent.
Hotels, restaurants and bars recorded a series record pace of growth of 8.6 per cent, while there was a 4.3 per cent increase in spending within the recreation & culture category.
According to the study, spending by channel revealed a healthy increase in face-to-face based expenditure, with growth of 3.1 per cent during the month. Online spending rose by 6.2 per cent compared to the same month last year.
Paul Smith, senior economist at Markit, which compiled the data for Visa, said the figures suggest consumer spending and wider GDP growth will be sustained at marked rates over the first half of the year.
“Consumer spending growth continued to hum along nicely during May, maintaining the recent trend. Growth was broad-based and, indicative of the increasing confidence amongst households, spending on the high street rose at a marked and accelerated pace,” he said.