The Government’s home renovation incentive scheme is prompting households “to invest heavily in the fabric of their homes” with spending expected to reach a record €2.1 billion this year, according to the latest Consumer Market Monitor.
The average spend on household renovation projects is now about €16,400, according to the report, which is published by the Marketing Institute of Ireland and the UCD Michael Smurfit graduate business school.
Report author Mary Lambkin said the tax incentive scheme, which expires on December 31st, had been a "major factor" in stimulating spending on household goods and enhancements, as well as providing "considerable support" for the building trade and related retail sector.
Surged
Sales of hardware, furnishings and electrical goods have surged 14 per cent this year, making it the highest growth sector of the retail market in 2018.
Household equipment sales have been “growing rapidly since 2014”, the report noted.
But while the volume of sales is more than 50 per cent ahead of the last peak in 2007, the value of these sales remains 9 per cent below the peak level, suggesting that prices are still lower than they were in the final year of the economic bubble.
Electrical goods
Within the household equipment category, electrical goods have recovered fastest from the recession and are now 42 per cent higher in volume than they were in 2007 and have also risen 20 per cent in this year alone.
"Despite the uncertainty around the impact of Brexit on our economy, Irish consumer confidence is significantly higher than our European neighbours and there has been no apparent dampening of consumer spending," said Marketing Institute of Ireland chief executive Tom Trainor.
