Consumer spending surges 7% in final quarter

Consumer spending in the last three months of 2015 climbed by more than 7 per cent compared with the same period in 2014, while online spending rose 16 per cent in the run-up to Christmas, according to a new report.

The Visa Europe Irish Consumer Spending Index showed total household expenditure rising 6.6 per cent across all payment methods in 2015 with a final quarter showing spending surged 7.1 per cent.

The increase in online spending in December was even more dramatic, with a 16 per cent year-on-year bounce, the highest recorded by Visa Europe.

Cyber Monday

The internet spending spree came on the back of November’s Cyber Monday which, Visa Europe said, was the busiest day of the year for online shopping in the Republic. Face- to-face spending also rose in December but the rate of expansion slowed to 3.8 per cent.

The report chimes with the latest numbers from the Central Statistics Office. Official figures published last week show sales volumes rose 2.2 per cent from October to November and were up 9.3 per cent on an annual basis. If motor trade volumes are excluded, sales were up 2.8 per cent in November and increased 8.9 per cent compared with the same month a year earlier.

Three sectors monitored by Visa Europe recorded double- digit growth last year. Spending on household goods rose 10 per cent while spending on health and education rose 10.7 per cent, the same percentage increase as recreation and culture.

‘Star Wars: the Force Awakens’

That sector was boosted by the new Star Wars film which led to a sharp rise in spending in the State's cinemas. It generated €836,845 in ticket sales by Irish cinemagoers on its opening day alone, a record. More than €3 million was spent on Star Wars tickets in its first week.

Adding to the strong performance of the recreation sector was larger numbers spending in toy and department stores than was seen in 2014.

Clothes and shoes were areas that saw a slowdown in the rate of expansion as weather conditions hampered retailers’ efforts to secure sales of winter clothing. Spending was up just 3.9 per cent over the year to December, well down on the 15.7 per cent rise from November. It was the worst performance for the sector since October 2014.