Retail Ireland have today released new consumer spending projections for the year and they predict the best performing Christmas in seven years for Irish retailers.
 
They believe that expected tax cuts in next week’s budget should help raise consumer mood and boost spending just in time for the crucial Christmas trading period. 
 
Retail Ireland said it now expected core retail sales for December 2015 to reach €4.05 billion, up by 3.5% over 2014.

This new projection comes after a steady recovery over the year to date, following a torrid few crisis years, characterised by collapsing sales, store closures and job losses. Retail Ireland say consumer confidence remains high and indications are that Budget 2016 will again put more money back into consumer pockets. 
 
They have predicted that strengthening momentum will mean that consumer spending growth will top 3.1% in the full year of 2015 versus last year, out-performing previous Retail Ireland estimates. 
 
Retail Ireland  estimates that personal consumption expenditure on core retail goods during December will be equivalent to about €2,450 per household, approximately €600 more spending per household than in any other month of the year. 
 
Director of Retail Ireland Thomas Burke said: "The fortunes of Irish retailers are finally on the up. Positive trends during the year and a budget that will put money back into the economy create a positive backdrop as we enter the crucial Christmas trading period. 

"It is vital that we maximise the benefits of the recovering economy by reducing income tax and making it more attractive for employers to take on new staff. The marginal rate of tax is still way out of line internationally and should be reduced over the coming years. Any reduction should not be funded through increases in other taxes such as excise duties or VAT." 
 
Source: www.businessworld.ie