Spending falls flat as bad weather and cost pressures bite, figures show
For That Positive Sector Picture: Spending Bump A Cummins 8%, Fell Following Larry By July Social In
Spending on recreational activity dampened in August as consumers were hit with mixed weather conditions and battled an ongoing cost-of-living crisis, new figures from Bank of Ireland suggest.
Debit and credit card spending was broadly flat when compared to figures recorded in July, according to the latest Bank of Ireland Spending Pulse.
“We saw in July that people flocked indoors to escape the wet weather, and hope sprung that a brighter August would spark a spending rebound. However, a mixed month weather wise saw flatlined spending across a variety of sectors,” said Jilly Clarkin, head of customer journeys and SME markets at Bank of Ireland.
Spending in the accommodation sector dropped by 4%, while social spending also fell by 8%, following a positive bump for that sector in July.
Total spending in restaurants fell by 5%, pub spending dipped by 4% and people spent 3% less in fast-food outlets.
Frugality was also recorded in other parts of Europe as France recorded a 20% decrease in spending, Portugal an 18% plunge, spending in Italy slumped 16%, Greece witnessed a 15% decline and Spain saw a 13% drop.
The summer period is usually the busiest for many retail sectors and the slump in August spending may not have provided enough insulation as the autumn and winter months loom.
Households face further price pressures as the European Central Bank raised interest rates again by 0.25%, marking the 10th consecutive hike by the regulator since it began its aggressive campaign last year to drive down inflation.
However, many energy suppliers have cut their prices for residential customers following wholesale gas price declines and an expected mild autumn.
Meanwhile, parents preparing their children for the new school term contributed to a bump in spending in some areas. Book shop spending surged by about 39%, shoe store shopping rose by 11% and spending on children’s clothes went up by 5%.
There was also a 19% increase in spending on tourist attractions and an 11% increase for amusement parks, as families splurged on end-of-summer activities.
Countrywide, Leitrim was the only county to post a monthly spending spike of more than 2%, with Donegal, Laois, Longford, Mayo and Wicklow recording a modest 1% increase.
Teenagers, at 8%, were out in front in terms of the demographic that spent the most last month. Spending remained flat amongst the older cohorts, with spending amongst the over 45s and over 55s groups dipping from the previous months’ levels.