BoI: Consumer spending set to worsen

CONSUMER spending trends are likely to worsen in the remainder of the year, according to Bank of Ireland.

In its latest quarterly economic outlook, the bank said it has marginally widened its forecast for consumption declines for 2011.

“Consumer spending has surprised to the downside, with households cutting discretionary spending in response to a rise in prices, further falls in employment and another — albeit modest — decline in average earnings, and we now expect a 2.5% fall in the volume of personal consumption against our previous 2% forecast,” chief economist Dan McLaughlin said.