There was a slump in spending in September as the back-to-school period saw consumers tightening their belts.
Debit and credit card data from Bank of Ireland for September 2023 shows that spending fell by 8 per cent when compared to August.
This continues an annual trend of a post-summer fall in spending, as September spending has fallen by between 6 per cent and 8 per cent in the month in each of 2021, 2022 and 2023.
The latest Bank of Ireland Spending Pulse recorded drops in both social spending (-14 per cent) and in the retail sector (-7 per cent), as consumers cut back and a back to school mode kicked in.
Jilly Clarkin, head of customer journeys and SME markets at Bank of Ireland, said that with memories of summer holidays receding, it was not surprising to see a fall in travel spending in particular.
“Car rental outlay fell by 30 per cent, accommodation spend dropped by 21 per cent, bus travel by 14 per cent, and toll fees by 6 per cent, as many people fell back into their regular routines close to home,” she said.
The pulse report also recorded a 54 per cent drop in spending on cinemas in September, as well as declines in spending on florists (down 8 per cent) and barber shops (down 7 per cent).
Spending among teenagers fell 20 per cent, bucking a recent trend where they led the way in the spending stakes.
Spending among 18–25 year olds fell by 6 per cent as they returned to colleges and training courses, the 26–35 cohort saw a 9 per cent drop, and 36–45 year olds cut spending by 10 per cent.
The regional breakdown showed spending drops of as much as 9 per cent in Donegal, Kildare, Laois, Louth, Mayo and Meath.
While there was a drop in Irish consumer spending in many countries internationally, Bank of Ireland noted a 9 per cent jump in Irish consumers spending in France, “no doubt driven by rugby fans” as they attended Ireland’s world cup matches in Bordeaux, Nantes and Paris.
Despite the Rugby World Cup drawing huge viewership, with Ireland’s clash against South Africa on September 23rd drawing the largest TV audience of the year so far, businesses at home have not seen an uptick in spending.
Monthly pub spending was down 19 per cent in September, with the outlay in restaurants falling by 17 per cent and in fast-food outlets by 14 per cent.
“Perhaps the ever-growing number of fans supporting Andy Farrell’s side are biding their time until the knockout stages begin, which could see October’s spending rise dramatically if Ireland can reach the final in Paris at the end of this month,” Ms Clarkin said.
