Visa’s Irish Consumer Spending Index has found that household expenditure has seen its fastest growth since 2016, driven mainly by the recent heatwave.
Consumer spending has increased by 5.5% year-on-year in June, and it is also 3.7% higher than May’s figure.
Summer Spending
Andrew Harker, Associate Director at IHS Markit, said attributed the recent three-week heatwave as the primary booster, benefiting almost every consumer category.
“Sector data shows that Hotels and Restaurants, Food and Drink and Clothing and Footwear all saw growth accelerate as households headed out onto the high street to eat, drink and shop while basking in the summer sun,” he said.
“With the good weather continuing into July, consumer confidence at the highest for nearly two-and-a-half years and unemployment at the lowest in over a decade, the stage is set for further increases in spending as the second half of 2018 begins.”
Irish consumer spending saw solid growth in both face-to-face, up 5.4%, and e-commerce, up 5.5%. Face-to-face performance in June was the highest growth seen in the category since January this year.
The Breakdown
Household Goods, with a 13% increase in year-on-year spending, was the fastest-growing category, as it was in May.
Hotels, Restaurants and Bars saw a 10% increase, with industry members reporting of an increase in ‘staycations’ in Ireland, helped by the summer concentration of sporting and musical events.
Food and Drink reached a three-month high, increasing by 7.9% year-on-year. Clothing and Footwear grew by 5.0%, Transport and Communication saw spending jump by 7.0% and Recreation and Culture categories rose by 4.5%, with summer clothing and outdoor events proving popular due to the good weather.
“As Ireland enjoyed a heatwave in June, consumer spending continued to tell a positive story recording the fastest rise since July 2016. The good weather benefited the Irish high street in particular, with Face-to-Face spending marking the strongest increase since January,” added Philip Konopik, Ireland Country Manager, Visa
“Notable winners in the recent heatwave were Household Goods and Hotels and Restaurants, both recording double-digit growth. Food and Drink and Clothing and Footwear also experienced accelerations in spend last month as consumers stocked up on the latest trends and essentials to enjoy the sunshine.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.
