Irish consumer spending is expected to reach €105 billion this year, which would eclipse the previous record hit of €100 billion during the Celtic Tiger in 2007.
A new report from the Marketing Institute of Ireland and UCD Michael Smurfit Graduate Business School cites the expiration of the Government's Home Renovation Incentive scheme at the end of this year as a contributory factor behind the surge in spending.
The study shows that both retailing and services are doing well, up by 4% for the year and spending is matched by strong VAT returns which are up 5.5% this year.
It also reveals that households are getting richer, mainly due to a rise in property prices.
Household net worth per capita is now slightly above €150,000 - a rise of 70% since 2012.
The report noted that perceptions of increasing wealth feed confidence and encourage consumers to release some of their perceived wealth for spending.
Professor Mary Lambkin, author of the report, said that in a market where houses for those trading-up or downsizing are in short supply, the Home Renovation Incentive tax incentive scheme has been a major factor driving the trend for home transformation.
Professor Lambkin said the scheme has stimulated a lot of spending on household goods and enhancements, as well as being a considerable support for the building trades and related retail sectors.
"12,179 building contractors have been involved in these projects and, given a multiplier of 2-3 for the number of trades contributing to these projects, that may have supported as many as 30,000 jobs," the Professor added.
