Hotels/Restaurants spend lowest since August ‘17
Spending in the Hotels & Restaurants category was up just 2.2% in May, the slowest growth since August 2017 according to Visa’s Irish Consumer Spending Index, produced by IHS Markit, which measures expenditure across all payment types (cash, cheques and electronic payments).
24 June 2019 | 0
A modest decline in overall spending took place in May with the latest data showing that expenditure declined by 1.4% on the year following growth of 1.2% in April. May marked the second month in 2019 that a reduction in spending has been registered.
The Food & Beverages, Clothing & Footwear, Transport & Communication and Miscellaneous Goods & Services sectors all registered year-on-year falls in expenditure of 0.7%, 2.6%, 2.6% and 3.9% respectively.
“While the fall in Irish consumer spending has largely been driven by a poor performance on the High Street, it seems that consumers are becoming more cautious of their purse strings as eCommerce also recorded a weakened rate of growth for the third successive month,” said Philip Konopik, Visa’s Ireland Country Manager, “While some sectors did see a rise in spending, rates of expansion have slowed.”
Paul Smith, Economics Director at IHS Markit, added, “The latest data add to a view of a weakening Irish economy in the first half of the year in line with the broader European and global slowdown. Against this backdrop, any notable pick-up in the coming months seems unlikely, although the recent improvements in consumer sentiment and business surveys provides hope of a return to some stabilisation and modest growth.”