Slowdown in Christmas consumer spending raises concerns

Growth in household spending slowed in December for the third month in a row even as online shopping surged amid the Christmas spending splurge, raising concerns about the outlook for consumer spending in 2017, according to a Visa survey.

Overall household spending increased 3.6% in the month from December 2015, but growth was down from the 3.9% annual rate posted in November and was growing at its slowest pace since the payments firm started its current survey over two years ago, the Visa Irish Consumer Spending Index found.

The index, which tracks spending in cash and cheques, as well as by electronic means, was the first survey to show spending during the key Christmas month, and was “concerning” for Irish shops, said David Fitzsimons at industry group Retail Excellence Ireland.