Consumer spending rises while affordability improves, AIB data shows

Ireland is a relatively small economy in the eurozone, but European Central Bank president Christine Lagarde said sustainable consumption growth will lead to further interest rate reductions

Spending in pubs and off-licences was down 10%, while restaurants declined 6% in the month.

Consumer spending increased last month annually amid cooling inflation, pointing to further economic recovery which may contribute to the European Central Bank (ECB)’s decision to reduce interest rates further.

A report published by AIB showed spend was up 4% in annual terms last month and up 7% in June. The pace of inflation stayed steady at 2.2% last month.