Consumer spending was broadly flat in January, following a marginal expansion at the end of 2019, research shows.
Visa’s Irish Consumer Spending Index, produced by IHS Markit, showed that household expenditure fell by just 0.1%, after rising by 0.9% in the previous month.
Overall, the report signalled a subdued start to 2020 for Irish household spending.
“Irish consumer spending was little-changed compared to a year ago in January, after last December’s figures were boosted by the timing of Cyber Monday," said Sian Jones, Economist at IHS Markit.
"While there was a relative improvement for High Street retailers, where spending edged closer to stabilisation following a lacklustre Christmas period, eCommerce expenditure was broadly flat after a marked expansion in December.”
Online Vs Face-to-face
When split by channel, data for the opening month of the year signalled only fractional reductions in both face-to-face which fell by 0.2% during the period as well as spending and online purchases.
"The fractional reductions in both face-to-face spending and online purchases in January reflect the fact that the majority of retailers begin their sales in December now," highlighted Philip Konopik, Ireland country manager, Visa.
"Despite this, it should be noted that the majority of sectors saw small rises in spending, with Hotels, Restaurants & Bars the standout performer after recording the highest level of growth.”
The research showed that e-commerce expenditure was little-changed following a strong rise during December, which largely stemmed from the boost Cyber Monday provided to annual growth.
© 2020 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.
