Earnings of Irish households are set to stabilize this year after declining for two consecutive years, data released by the Irish Business and Employers Confederation (IBEC), which represents businesses in Ireland, showed Monday.
The newly launched Consumer Monitor is designed to provide a unique analysis of consumer spending power by charting key consumer indicators and trends.
Data showed that mortgaged households in Ireland will be EUR700 better off per annum, helped by a combination of recent interest rate cuts by the European Central Bank (ECB) and a further possible 0.5 percent reduction over the coming months.
The agency found that spending power of mortgaged working households will increase by 2.4 percent this year, helped by falling interest rates, modest pay rises and the absence of additional taxation. The spending power of other groups, meanwhile, is likely to decline in the the 0.8-3.7 percent range.
At the same time, the overall net savings ratio is seen rising sharply to about 10 percent, reflecting the effects of the recession.
"The Government's approach to reviving activity in the domestic economic needs to be tailored to reflect the different types of consumer and their different circumstances," IBEC Chief Economist Fergal O'Brien said. "There are practical steps the Government can take to support activity in the domestic economy, even in the face of constrained public finances."
by RTT Staff Writer
For comments and feedback: email@example.com