Consumer spending rose 4.2 per cent in March as online buying picked up pace, new data from Visa shows.
Irish shoppers spent less on clothing and footwear in the year to March, with hotels, bars and restaurants also taking a hit.
The Irish Consumer Spending Index showed slower than average growth in expenditure across cash, cheques and electronic payments, with face-to-face spending showing a sixth month of decline, shrinking by 2.4 per cent.
In contrast, online spending was 18.1 per cent higher, the strongest reading in four months.
But there was good news for transport and communication sectors, which rose 12 per cent, along with recreation and culture, which increased by 7.5 per cent.
"Irish consumer spending continues to rise, albeit at a reduced pace, with March recording the sixth month in a row where the rate of growth was less than 5 per cent," said Philip Konopik, country manager for Ireland in Visa.
Bus strike impact
“While this is positive, there is cause for concern in two areas. Face-to-face spending has been in decline for the past six months and the clothing and footwear sector is particularly challenged. The ongoing bus strike has impacted regional businesses and it could hold face-to-face spending back.”
The quarterly figures showed spending was 2.5 per cent higher year on year compared with the first quarter in 2016. But the rate of growth slowed for the third quarter in a row, Visa noted.
IHS Markit senior economist Andrew Harker said the spending rebound had been expected after a leap day-related decline in February. "However, the first quarter as a whole saw the rate of growth ease from the end of 2016 as consumer confidence remained muted," he said. "There is still little sign of a recovery on the high street, with face-to-face spending now in a protracted downturn, and so ecommerce is having to drive growth at present."
