Seamus Kirk
Question:21. Deputy Seamus Kirk asked the Minister for Finance if he agrees with the ESRI that action is required to boost weak consumer demand; and if he will make a statement on the matter. [41459/13]
View answerThursday, 3 October 2013
Questions (21)
Written answers
The Government’s primary macroeconomic policy objective is to put the economy back on a sustainable growth path in order to move to a point where sustained job creation is taking place. All of the Government’s economic policies are designed with this objective in mind - repairing the banking sector, repairing the fiscal deficit and improving competitiveness will all contribute to economic recovery. The latest data are reasonably encouraging. Domestic demand is showing signs of stabilisation. In particular, consumer spending is up 0.7 per cent quarter-on-quarter in the second quarter this year and retail sales were reasonably strong over the summer period.
In addition, developments in the labour market have been positive with employment up by 1.8 per cent in the second quarter this year which represents over 33,000 addition jobs. We have now seen employment growth for four consecutive quarters. Unemployment is down from its peak of 15.1 per cent in February last year to 13.3 per cent in September. This improvement in the labour market will help support consumer demand by boosting disposable incomes and by enhancing confidence. So, while I am not getting carried away, I am cautiously optimistic that a modest recovery is underway on the consumer spending front.