Bank of Ireland recently released its debit and credit card analysis for June which revealed a 4% overall monthly fall in spending, with a drop in consumer outlay across a number of sectors.
In contrast to the trend in May total social spending fell by 5% in June. The overcast weather may have played a part in people spending more in cinemas (up 25%), but that increase was an outlier – with consumer spending on clothing and groceries both falling by 6% month-on-month.
Spending in each of the 26 counties fell in June, with Donegal dropping the most (down 8%). Kerry recorded a spending decline of 7%, the same as Roscommon, while negative trends continued in Limerick, Tipperary and Wicklow – which all recorded a spending drop of 6%.
Further afield holidaymakers flocked back to popular European locations following a relative decline in May, with June spending jumps recorded in Italy (up 48%), Portugal (up 45%), Spain (up 38%) and France (up 32%).
“Cost of living increases are a concern for everyone and in that context it’s not surprising to see June’s spending levels dropping a bit on last month,” said Jilly Clarkin, Head of Customer Journeys & SME Markets at Bank of Ireland, commenting on June’s spending data, “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.”