According to AIB, consumer spending increased 4% in June despite consumers making nearly 500,000 fewer transactions, indicating that inflation is influencing Irish purchasing decisions, with hotels seeing the largest month-on-month increase.
According to AIB, hotels saw the largest month-to-month growth with spend increasing by 11%, and the average transaction in the sector rose from €85.87 to €90.16, while the average transaction increased by 47 cents in pubs and off-licences, 45 cents in restaurants and 16 cents in grocery stores, with all of these food sectors seeing an increase in spend and a fall in number of transactions in June.
AIB said that the data was compiled from over one million card transactions by Irish consumers during June 2022 and has been anonymised and aggregated, and all comparisons are based on June versus May data unless otherwise stated. Based on its data, AIB said that it can reveal that:
- overall, spending was up 4% in June compared to the previous month as consumers spent almost €87 million a day throughout the month of June;
- digital wallet payments were up 10% as consumers spent over €12 million a day using the technology, or one in every seven euro spent during the month;
- 24 June, the day after pay day for most people, was the busiest day of the month for consumer spending.
- and airline travel and homewares spend remained flat at +0.18% and +0.06%, respectively, while clothing (+3%), electronics (+4%) hardware (+1%) and health & beauty (+3%) were all up.
Statement By AIB Head Of SME Banking
Speaking about the Spend Trend, AIB Head of SME Banking John Brennan said, "During June, consumers made fewer transactions, but those transactions were, on average, for larger amounts. This is an indicator that inflation is starting to impact Irish purchases and consumer behaviour. The food industry is particularly affected when it comes to changes in their supply chain costs, such as the price of petrol, fertiliser and feed for livestock.
"Overall consumer spending was up 4% in June, with digital wallet payments up 10%, showing how increasingly popular the cashless payment method is becoming with the public. They are now spending over €12 million euro 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.