Consumer spending dropped by 0.5% in July

Consumer spending during the month of July dropped by 0.5%, the first decrease in spending of the year since January, according to the AIB Spend Trend.

Despite this overall decrease, spending significantly increased in businesses supported by domestic Irish tourism, according to the recent figures.

Hotels saw a 13% increase in spend, spend in pubs and off-licences rose 11% and restaurants saw a 5% increase. Spending on groceries also rose by 2%.

All other sectors saw a decrease in spending, with airline travel seeing a decline of 8.5%.

Reflecting the increase in domestic travel, Dubliners’ spending rose in every county except for Kildare and Longford.

They increased their spending by 55% in Wexford, 53% in Kerry, 26% in Cork and 16% in Galway.

The data was compiled from more than one million card transactions by Irish consumers during July 2022 and has been anonymised and aggregated.

All comparisons are based on July versus June data.

The data reveals overall spending was down 0.5% in July compared with the previous month as consumers spent almost 87 million euro a day throughout the month of July.

Digital Wallet payments were up 6% as consumers spent almost 13 million euro a day using the technology on their devices, counting for one in every seven euro spent during the month.

July 29, coinciding with pay day for many people and the Friday of the August Bank Holiday weekend, was the busiest day of the month for consumer spending.

Spending was down in clothing by 7%, electronics dropped by 1%, hardware by 5%, health and beauty fell by 6% and homewares dropped by 4%.

AIB head of SME banking, John Brennan, said: “While overall spending in July fell slightly, spend in establishments that are supported by Irish tourism saw a significant increase.

“As is typical in the later summer months when fewer holidays are being booked, consumers spent less on airline travel, but spending in the sector is much higher than last year when Covid-19 travel restrictions were still prominent.

“Digital wallet payments are up 6%, showing how increasingly popular the cashless payment method is becoming with the public.

“They are now spending nearly 13 million euro a day by tapping their phones and watches.

“This is equivalent to nearly one in every seven euro during the month being spent via a digital wallet.”