Consumer spending during the month of July fell by 0.5% - the first decrease in spending since January of this year,0 according to the AIB Spend Trend for July.
Details
Despite this overall decrease, spending significantly increased in businesses supported by domestic Irish tourism. 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 over 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 unless otherwise stated. Based on this data, AIB revealed that:
- overall, spending was down 0.5% in July compared to the previous month as consumers spent almost €87 million a day throughout the month of July;
- digital wallet payments were up 6% as consumers spent almost €13 million a day using the technology on their devices, counting for one in every seven euro spent during the month;
- 29 July, 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;
- and spending was down in clothing (-7%), electronics (-1%) hardware (-5%) and health & beauty (-6%) and homewares (-4%).
Statement By AIB Head Of SME Banking
Speaking about the Spend Trend, 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 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."
© 2022 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
