Tom Trainor, chief executive of the Marketing Institute of Ireland and Mary Lambkin, Professor of marketing, UCD Smurfit SchoolConsumer business spending is projected to decline by 1pc this year alone, according to the consumer market Monitor Q3, launched today by UCD Michael Smurfit Graduate Business School and the Marketing Institute of Ireland.This figure is a significant improvement over last year's 10pc decrease of total expenditure and, according to the monitor, indicates that consumer spending is stabilising.
Not surprisingly, the monitor also highlights the fact that people are becoming more price money conscious, economical and best managers, with 75pc actively seeking around for best value and 73pc starting to think more carefully about what they buy.
The monitor has a 0 .4pc forecast increase of consumption in 2011, but having said that depends on a continuation of the trends view spending lately.
According to the latest discoveries, credit card spending remained static from may until August 2010 and repayments exceeded new expenses every month of the year. There has been a steady increase in personal savings, which increased further in 2010 to 12.3pc, topping peak of 2009 of 11pc.Personal Savings are expected to remain above 10pc until 2013, but subsequently reduced to approximately 8pc.
Consumer confidence continued to recover this quarter; the level in August 2010, a-12, was more than double that of August 2009, a-26, which now has Ireland back in line with the European average.
"The results of Consumer Market Monitor Q3 show that although consumers are beginning to loosen their purse strings there is still some concern for the future that continue to save a lump sum of their earnings each month," said Maria Lambkin, Professor of marketing, UCD Smurfit Business School. "However, Q3 figures can be seen as encouraging for the retail industry, as we can see that a marginal increase in consumption translates into an increase in sales volume for the retail as warehouses, clothing, medical and cosmetic products and electrical products."
Your monitor has also found that refunds remain higher lowering personal loans credit sector.Loan, which accounts for personal credit 85pc of each of the sector reached in March 2009, but refused every month since then, with the figure of August 2010, amounting to € 139 billion residential mortgage.
Q3 reported some positive news, as the total number of new mortgages issued Rose from 21pc between T1 and T2 of 2010, with the mortgage lending value 15pc increase again during the same period. first time buyers remain the strongest segment of this group and account for 60pc of the total market in value terms.
Overall retail sales (excluding commercial engines) have been stable this year but overall sales volume decreased by 1.4pc year-over-year in August 2010.There was also a value selling 3.6pc descent by August 2010 compared to August 2009.The constant disparity between value and volume reflects the fact that prices continue to fall faster than sales units, according to the monitor.
Trading engine and fuel, was the only sector to show the value of year-on-year increase in August 2010.Sales of cars are an indicator of activity in the broader consumer market and this year the total number of new passenger cars of licence between January and September 2010 grew from 52pc over the same period last year.
The monitor is predicting that there will be almost 100,000 new auto sales this year.So far, there have been 13,615 credits under the system of demolition and how these arrangements came to an end one expects that consumers can take further advantage of the discount, with 15,000 credits predictable by year-end.
Retail Sectors who have experienced a growth in sales include: warehouses (3.9pc);Home appliances (2.9pc); apparel, footwear and textiles (1 .4pc);Pharmaceuticals, medical and cosmetics (0.6pc); and non-specialized stores (1.2pc). Those showing a decline included: books/newsstands (-6.3pc); furniture and lighting (-10 .4pc); pub (10.3pc); hardware/paint/glass (-2pc); fuel (-2pc); grocery stores (-0.5pc); and other retail categories (-5.6pc).
"Third quarter Results illustrate clearly the beat on the impact of increasing consumer confidence in the performance of certain sectors of the economy," said Tom Trainor, chief executive of the Marketing Institute of Ireland. "It was encouraging to see that consumers are more confident of their financial situation so take advantage of falling prices, sales and great offers from products and department stores ".
Consumer market monitoring using quarterly data collected from a variety of sources, including the Central Statistics Office (CSO), the Central Bank and the Commission. download the full report.
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