Consumers set to inject extra €9bn into economy

CASH-RICH consumers are set to pump an extra €9 billion into the economy this year — but up to half will be gobbled up by rises in fuel, health and food bills.

Consultants Amárach reckon consumer spending will top €91bn in 2007 — that’s up by 11% on the year before — as SSIA cash and tax cuts pour into the economy. Despite rises in bills wiping out up to €4.5bn of the extra spend, Amárach predicts spending will grow at levels not seen since the boom time of 1999 and 2000.

“Consumer markets will enter a spending ‘sweet spot’ in the first six months of 2007,” a report by Amárach said.