Ibec predicts 1.9% rise in spending as employment improves

The next few quarters should see a sustained recovery in consumer spending leading to an overall consumption increase of 1.9% for 2014, compared to a 1.1% decline last year — according to employers’ representative, Ibec.

Coming at the start of a week that sees latest consumer sentiment and inflation gauges, Ibec said in its latest quarterly economic outlook that it expects the recent trend of labour market improvement to continue over the course of the coming quarters, leading in turn to supported incomes and a consumer spending recovery.

With regard to inflation — the CSO publishes March inflation data on Thursday — Ibec said it expects inflationary pressures to remain low this year, as a whole (despite low interest rates and growth in consumer spending) due to sustained price competition in key consumer markets.