By Business & Finance 
The latest Visa Europe Irish Consumer Spending Index shows that a year-on-year increase of +7.2% was recorded during January across all payment methods.
This was faster than the increase of +6.5% seen in December and the second-sharpest expansion since the series began in September 2014.
Consumer spending has been helped by higher wages and reduced unemployment.
Wages rose 2.7% year-on-year in the third quarter of 2015, while the rate of unemployment is at 8.6%, the lowest since the end of 2008.
The Irish Travel Agents Association (ITAA) reported that their members had seen an unprecedented level of booking enquires during the month, with some members recording sales increases of up to 40%.
Increased consumer spending on leisure activities in January was highlighted by a double-digit expansion in spending in the Hotels, Restaurants and Bars category (+12.2%).
The Transport and Communication sector was boosted by +7.8% growth, with car sales proving to be a key factor. The Society of the Irish Motor Industry reported that more than 39,800 new cars were sold in January – an increase of over 33% on the number of new cars sold during the same month in 2015.
Philip Konopik, country manager, Ireland, Visa Europe, said: “The year-on-year increase in consumer spending during January is a very positive performance, particularly as it builds on growth through 2015. It is reflective of the improvement in overall consumer confidence, particularly in terms of sales of big ticket items like cars and holidays in January. The real highlight is that all sectors in the economy benefited from the rise in consumer spending.”
Andrew Harker, senior economist, Markit added: “The start of 2016 showed no let-up in consumer spending following the Christmas holidays as the Visa Europe Irish Consumer Spending Index signalled a further substantial upturn in household expenditure. The rate of growth even quickened from that seen at the end of last year, with consumers happy to spend on going out, as well as on big ticket items. Strong consumer confidence and falling unemployment suggest that there is little prospect of a slowdown in growth in the near-term at least.”
