Press release -
Clothing & Footwear Purchases Drive Irish Consumer Spending To 5.4% Year-on-Year Increase In September
DUBLIN, 12 October 2015:Visa Europe's latest Irish Consumer Spending Index has revealed that consumer expenditure rose by 5.4% in September, compared to the same period in 2014. This represents the thirteenth month of unbroken growth which has been recorded since the series began in September 2014.
The clothing & footwear category was the standout performer this month, with a 13.9% spike in spending – the largest growth in the category since the Visa Europe Irish Consumer Spending Index was established. September also represents the 11th consecutive month of growth for the category. The key factors behind the rise are consumers upgrading their wardrobe for autumn and winter, as well as back to school purchases.
eCommerce was also a key factor after posting a fourth successive double-digit expansion. The rise of +11.7% year-on-year in September was the strongest in three months, highlighting the increased interest of Irish consumers in online shopping. This level of growth in eCommerce expenditure is expected to be maintained in the run-up to Christmas.
Double-digit rises in spending were also seen in the household goods and recreation & culture sectors. Transport & communication also signalled the sharpest annual expansion in the series history (+7.1%). The only sector not to record an increase in expenditure in September was hotels, restaurants & bars which saw spending remain broadly unchanged from a year earlier.
Conor Langford, Country Manager, Ireland, Visa Europe said:
“Given the contribution of consumer expenditure to Ireland’s overall economic performance, our data makes for very positive reading in terms of Ireland’s continued economic recovery. Consumer spending rose sharply again in September, which is a positive sign ahead of the upcoming budget. This confidence is also reflected among the retail community who are expecting a rise in spending this Christmas.”
Andrew Harker, Senior Economist at Markit said:
“Growth in consumer spending remained elevated at the end of the third quarter of the year, according to the latest Visa Europe Irish Consumer Spending Index. The data suggest that consumer spending continued to make a positive contribution to GDP, with recently released official data backing up the findings from the Consumer Spending Index and signalling a strong expansion of Irish economic output in Q2. Taken alongside positive news from retail sales, consumer confidence and business surveys, the Irish economy looks in good shape in the run-up to Christmas.”
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About Visa Europe’s Irish Consumer Spending Index
The Index is based on spending on all Visa debit, credit and prepaid cards which are used to make an average of 110 million transactions every quarter and account for €1 in €3 of all Irish consumer spending. The Index adjusts these data spending figures for a variety of factors - such as card issuance, preferences and inflation. These adjustments mean that these data are distinct from Visa Europe's corporate performance and that the Index provides a robust indicator of consumer expenditure. It is produced in conjunction with Markit, a specialist provider of economic indices, who analyse and adjust the raw data to ensure it provides an accurate indication of consumer spending trends.
About Visa Europe
Visa Europe is a payments technology business owned and operated by member banks and other payment service providers from 37 countries. It is the leading payments system in Europe, and sits at the heart of the payments ecosystem providing the services and infrastructure to enable millions of European consumers, businesses and governments to make electronic payments.
Its members are responsible for issuing cards, signing up retailers and deciding cardholder and retailer fees. Visa Europe is also the largest transaction processor in Europe, responsible for processing more than 16 billion transactions annually – at a rate of 1,622 transactions per second at peak times.
There are more than 500m Visa cards in Europe, while €1 in every €6 spent in Europe is on a Visa card. Total expenditure on Visa cards exceeds €2 trillion annually, with €1.5 trillion spent at point-of-sale.
Since 2004, Visa Europe has been independent of Visa Inc. and incorporated in the UK, with an exclusive, irrevocable and perpetual licence in Europe. Both companies work in partnership to enable global Visa payments in more than 200 countries and territories.
For more information, visit www.visaeurope.com and @VisaEuropeNews
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