Consumer spending remains resilient in May

RTÉ News​

3 days ago

New figures from Bank of Ireland show that debit and credit card spending rose by 6.5% year on year in May, which was well ahead of the rate of inflation of 2%.
Bank of Ireland said that despite ongoing global uncertainty and trade tensions, Irish consumers have not pulled back on their spending.
It added that the latest data shows no evidence of a slowdown in expenditure, even in categories typically sensitive to economic sentiment.
Today's survey shows that retail spending increased by 3.6%, which Bank of Ireland said reflected steady demand for goods including clothing, groceries and household items.
Services spending rose by 3.7%, on the back of continued demand for personal care, transport and professional services.
Meanwhile, social spending jumped by 6.4%, with notable increases in restaurant and accommodation expenditures.
The bank said that restaurant spending alone climbed 6.3%, well above the 3.4% inflation rate for this category, while accommodation spending also rose by 5.6%, with prices remaining broadly stable.
Bank of Ireland noted that there was no sign of a decline in spending on "big-ticket" items such as furniture, electrical goods, airline fares and holidays - areas that often see early cuts when consumer confidence wanes.
Bank of Ireland's chief economist Conall Mac Coille said that Irish consumers are understandably cautious about global developments, but the data shows they remain confident in their own financial outlook.
"The 6.5% rise in card spending in May reflects a resilient economy and a willingness to continue making key purchases. This broad-based growth across sectors highlights the strength and stability of household consumption, even in the face of international uncertainty," he added.