Consumer spending in Ireland fell for the fourth consecutive year and could finish 2 per cent down by the end of 2012, new research suggests.

According to the Marketing Institute of Ireland and UCD’s Smurfit School, the continued decline reflects a long-term trend in disposable income.

However, overall disposable income in the first quarter was up 3.6 per cent on the first quarter of 2011. UCD professor of marketing Mary Lambkin suggests this is due to higher wages, lower interest rates and self-employed profits.

“It is likely that Irish consumer confidence will remain well below historical averages against the backdrop of a persistently high unemployment rate and international economic instability,” she said.

The Consumer Market Monitor report is a general indicator of the economy’s well-being.

“There is no magic bullet for the Irish economy,” said Tom Trainor, chief executive of the marketing institute.

“However . . . a path of sustainable growth lies ahead providing the international environment improves.”