Survey: Dwindling incomes to go on bills, not consumer spending

DWINDLING disposable income looks set to be used to keep households afloat this year instead of the Government’s wish to see more people spending to drive the economy, a survey suggests.

Although increased DIRT tax on savings in Budget 2012 may have been intended to encourage spending, a survey of 1,000 people for the Irish League of Credit Unions (ILCU) shows any increased spending will go towards rising bills and other costs rather than non-essential items.

The survey will do little to restore confidence in the economy, as 83% of respondents believe this year will be more difficult financially than 2011, including half who think it will be much tougher.