Consumer spending continued to rise in August, recording a 5.6 per cent increase on the same month a year earlier as shoppers spent more on household goods and entertainment

While lower than the 6.5 per cent recorded in July, the latest Visa Europe Irish consumer spending index shows that confidence remains high with year-on-year increases in spending have been recorded every month over the past 12 months.

In August the increase in consumer expenditure was widespread, with all monitored sectors recording growth. Spending on household goods rose 11.9 per cent last month while expenditure on hotels, restaurants and bars was up 10.9 per cent. Spending on recreation and culture also hit double figures, rising 9.4 per cent versus the same month a year earlier.

Separately, expenditure on clothing and footwear, increased by 9.3 per cent over the year, the sharpest pace of expansion seen in the 12-month series so far.

The latest index shows that online shopping remained a key growth channel last month, with expenditure up 10.2 per cent year-on-year. Face-to-face spending was increased by 3.7 per cent, slightly down on the record rise of 3.9 per cent recorded in July.

The index, which is based on spending on all Visa debit, credit and prepaid cards, monitors eight broad sectors. The Markit-compiled survey adjusts these data spending figures for a variety of factors - such as card issuance, preferences and inflation.