A study carried out by Visa's Irish Consumer Spending Index showed that people have not been spending as much.
The study is produced by IHS Markit and measures expenditure across all payment types including cash, cheques and electronic payments.
Face-to-face expenditure was down for the third month in a row, falling by 5.3% year-on-year which is the sharpest in the 53-month series of surveys.
Meanwhile, eCommerce expenditure was up by 9.8%.
Our spending is down 5% in the Clothing and Footwear sector, and 0.8% in the Transport and Communication sector.
The Household Goods sector saw an increase in January, rising by 8.4% year-on-year, as did the Hotels, Restaurants and Bars sector, where we are spending 4.4% more than we did before.
Visa Ireland Country Manager Philip Konopik said:
“Irish consumer spending was flat in January, reflecting the lower level of consumer confidence in the economy.
"Once again, there was a notable contrast between the High Street and eCommerce with online retailers recording almost double digit growth, while the High Street saw the sharpest fall in expenditure since we started the Index.
"The Clothing & Footwear industry’s challenges in particular were highlighted after recording a seventh consecutive month where spending declined.”