Spending down in June as cost of living bites

/ 8th July 2022 /

Debit and credit spending fell 4% in June, with consumer outlay declining across all sectors, according to analysis by Bank of Ireland.

Total spending was down 5% last month as consumers scaled back their spending in pubs (-8%), on fast food (-4%), in restaurants (-3%), and on clothing and grocers (both -6%).

Spending in cinemas, however, rose by a quarter (+25%), perhaps due to the unseasonably overcast weather.

Spend in each of the Republic's 26 counties fell in June, dropping most in Donegal (-8%), Kerry, Roscommon (both -7%), Limerick, Tipperary and Wicklow (all -6%), but spending abroad increased significantly -- in Italy (+48%), Portugal (+45%), Spain (+38%) and France (+32%).

Spending also increased by nearly a fifth (+19%) among teenagers, aged 13 to 17. Otherwise, all age groups posted month-on-month declines, including decreases of 12% among 18-25 year-olds, 8% among 26-35 year-olds, and 5% among the 56-65 age bracket.

Jilly Clarkin, head of consumer journeys and SME markets at Bank Ireland, said cost of living increases were "a concern for everyone," and that in the context of rising inflation, the results were not surprising.

"The spending data analysed by Bank of Ireland over the past few months has produced some uneven trends, so while total consumer outlay rose significantly in May, it then fell again in June.

"It’s probably too early to identify a clear trend, but some people may be getting more prudent with their money as they look ahead to the second half of the year. But we’re also entering peak holiday season, so some consumers could just be holding their spending until they get away.”