Irish consumers splashing their cash as spending continues to rise

Consumer spending throughout the country continues to rise with shoppers splashing their cash on clothes, shoes and household items last month.

According to the latest Visa Europe Irish Consumer Spending Index, October expenditure represented the fastest pace of consumer spending in the last 14 months.

Figures reveal consumers spent the most money on household goods last month — this sector saw a 14.2% spike in expenditure as customers increased spending on home improvement and DIY.

Demand for items at clothing and footwear stores also rose with outlets recording an additional 12.3% in consumer expenditure.

The index indicated pubs in particular benefited from a number of sporting events last month, including the Rugby World Cup, while the tourism industry benefitted from the mid-term break.

Retailers on the high street experienced a 5.2% rise in spending during October, while hotels, restaurants and bars experienced an annual increase of up to 11.5% when compared to the same period last year.

Overall, expenditure increased by 6.8% on last year, following a rise of 5.5% in September.

Andrew Harker, senior economist at Markit, which compiled the index on behalf of Visa, said the fourth quarter of the year “started with a bang”.

“A real positive was growth in face-to-face spending as consumers flocked to the high street, resulting in the fastest increase in the series so far. Areas of strength ranged from spending on nights out to the more practical DIY items, highlighting broad-based improvements in the economy,” he said.

“The trends in the data provide real optimism that the run-up to Christmas will see further strength in expenditure.”