Card Spending On Hotels, Restaurants And Transport Increased In July
Card spending on hotels, restaurants and transport increased in July, according to new data from the Central Bank.
As reported by The Irish Independent, new data from the Central Bank shows that card spending on the hospitality sector increased in July compared with June, as overall card purchases increased by 3% to €7.2 billion.
Card spending on accommodation spending reportedly increased by 35% in July to an all-time high of €293 million in July.
Overall "social spending" reportedly increased by 12%, reportedly reflecting the opening of more food and drink venues, and overall point-of-sale expenditure on dining reportedly increased by 20% to just shy of €400 million.
Economists reportedly predicted that the social economy was set for a sharp rebound over the summer with consumers spending pent-up COVID-19 pandemic savings on food, drink and entertainment.
The Economic and Social Research Institute (ESRI) reportedly forecast a 7.5% increase in consumption this year, and an 8.5% increase in 2022, on the basis of people heading out on reopening shopping sprees and nights out.
The Central Bank reportedly published a research paper in April that forecast that approximately half of Irish lockdown savings, which are reportedly now estimated at €15 billion, would come back into the economy as spending.
However, a survey published this week by Permanent TSB and market research firm Kantar reportedly found that savers do not plan to splurge now that the pandemic appears to be receding.
Eight in 10 of the survey's participants reportedly said that they will adopt a conservative approach to using their nest eggs and keeping up the saving habit, which is a development that would put a ceiling on expected high growth expectations.
Additionally, lending to businesses reportedly declined in July despite the broad reopening of the economy, according to the Central Bank's monthly banking statistics, and net lending to non-financial corporations reportedly decreased by €225 million as firms remained cautious on new debt commitments.
The figures reportedly showed that loan repayments exceeded drawdowns by close to €1 billion.
Prices And Spending
The above news follows last month's news that prices in licensed premises, restaurants and hotels in Ireland increased year-on-year in July as well as news that spending in Irish hospitality venues increased in July.
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.