Spending surge continues

The corner shop has yet to stock pheasant, but there is no sign that strong demand for pacey cars, fancy wines and elaborate …

The corner shop has yet to stock pheasant, but there is no sign that strong demand for pacey cars, fancy wines and elaborate holidays is about to fall.

Consumption of a very public nature appears the major boomtime preoccupation of people who are unlikely to be put off their next cordon bleu meal by reports of creeping inflation.

Amid falling unemployment, over-stretched infrastructure and surging property prices, ours is the era of the big spender with the platinum card.

According to Mr Michael Nugent, sales and marketing general manager at Motor Import Ltd, which specialises in the exclusive BMW marque, certain high-end customers have begun to order new cars a year or two in advance.

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Motor Import has already sold 3,800 of the powerful German roadsters this year, well in excess of the 2,666 it sold in 1999.

The company is not alone. Figures compiled by the Society of the Irish Motor Industry suggest that 3,672 new Mercedes have hit the roads this year, along with 1,589 Volvos, 776 Saabs, 260 Jaguars and 48 MGs. In all, 197,489 new cars were registered in the first seven months of the year - 57,428 more than in the same period in 1998.

Yet spending is not confined to the motor trade. According to the Central Statistics Office, retail sales rose by 20.3 per cent in the year to the end of May. A major factor in the growth is the increasing use of credit cards. Irish Bankers Federation figures indicate that some 55 million credit card transactions worth £3.3 billion were transacted last year - £600 million more than in 1998. Total lending from the credit institutions at the end of June was €102.78 billion, €1.24 billion more than a month earlier and 24.3 per cent higher than a year previously. In June, credit institutions loaned €167 million in mortgages to residential buyers. In other sectors, spending continues relentlessly. For example, 30,000 people took ski holidays last winter, 5,000 more than a year earlier. In addition, 700,000 will have taken summer sun holidays by the end of October, according to the Irish Travel Agents Association. This is almost 60,000 more than in 1999.

And consumption of the little "extras" continues to rise. At certain restaurants, securing a peak time reservation is best done days and not hours in advance. Early evening diners may also be given a deadline by which they must make way for the second sitting, such is the hunger to eat out.

Sales of wine, that other barometer of financial well-being, are still increasing. Mr Peter Dunne, a director of Mitchell's wine shop in central Dublin, said people were spending more money on wine this year than last. "People are buying on impulse, but at a higher average rate than before," he said.

Meanwhile, heavy traffic clogs the roads. And for all our wealth, use of the public transport system remains as tricky as ever. One morning passenger was heard to remark, as a bus in Dublin edged its way at a walking pace towards the city: "If this is the Celtic Tiger, I want my old economy back." However, it appears few would agree.