Consumer spending to drop again

Consumer spending is set to decline for a the fifth year in a row this year, despite a slight increase in retail sales in volume and value terms in March, the latest data from the Central Statistics Office indicates.

The CSO said yesterday the volume of retail sales, excluding price effects, increased by 0.2% in March 2012, compared with February, with a year- on-year decrease of 1%. The value of retail sales increased by 0.6% in March 2012, compared with February and there was an annual change of –0.4%.

Bloxham chief economist Alan McQuaid said that while the results were better than expected the bottom line is consumers remain under immense pressure, with stealth taxes announced in the December budget further set to reduce disposable income this year.