Spending on cards fell last month as consumers seized the chance to get away for a break over the easter period, new data has shown.
The Bank of Ireland’s Spending Pulse, which analyses debit and credit card spend, found overall spending was down 7 per cent month on month in April, with teenagers the only age group to show a rise.
Retail spending was also down 7 per cent, and social spending fell by 5 per cent, mirroring a trend seen in April last year.
But the decline may have been down to the Easter holidays falling during the month, with a spike in spending overseas indicating that many consumers were heading for sunnier climes.
“Sharp rises in April spending in sunnier spots like Greece (+99 per cent), Portugal (+72 per cent) and Spain (+25 per cent) would suggest that many people used the Easter break to get away from it all for a week or two,” said Jilly Clarkin, head of customer journeys and SME markets at Bank of Ireland. “This was a spending trend that we also recorded in April 2022, so perhaps it wasn’t all that surprising that spending hikes experienced during the opening months of 2023 did not continue this April.”
Pub spending was down 6 per cent, with fast food spending down 5 per cent. On the positive side, restaurant spending was 1 per cent higher, with cinema spending spiking 47 per cent, hotel owners seeing an 11 per cent increase, and tourist attractions seeing a 9 per cent hike.
“Consumers are still battling the inflationary impact on their shopping trollies, and grocery spending dipped by 8 per cent in April,” said Ms Clarkin. “Time will tell if the latest Spending Pulse serves to indicate the beginning of a wider trend, or proves to be a temporary dip before spending levels soar upwards during the summer months.”
The most conservative spenders were in Sligo, where consumers cut spending by 9 per cent, with Kilkenny, Mayo and Meath dropping by 8 per cent. In Dublin, spending was down 7 per cent, similar to Donegal and Kerry.
The uncertain economic environment may have had an impact too, with a decline of 8 per cent in spending among 18-25 year olds and 26-35 year olds. In contrast, teenagers aged between 13 and 17 years old saw a 9 per cent increase.
