Irish consumers continued to show confidence in their personal financial outlook in May, as Bank of Ireland debit and credit card spending rose by a robust 6.5% year-on-year.
This marks another month of “strong growth in consumer activity, significantly outpacing the current 2% rate of consumer price inflation and suggesting that household spending remains a key driver of economic momentum.”
Despite ongoing global uncertainty and trade tensions, Irish consumers have not “pulled back on their spending and the data shows no evidence of a slowdown in expenditure, even in categories typically sensitive to economic sentiment.”
Spending growth was evident across all major sectors:
- Retail spending increased by 3.6%, reflecting steady demand for goods including clothing, groceries, and household items.
Services spending rose by 3.7%, supported by continued demand for personal care, transport, and professional services. - Social spending surged by 6.4%, with notable increases in restaurant and accommodation expenditures.
- Restaurant spending alone climbed 6.3%, well above the 3.4% inflation rate for this category. Accommodation spending also rose by 5.6%, with prices in this segment remaining broadly stable.
Importantly, there was no sign of a decline in spending “on ‘big-ticket’ items such as furniture, electrical goods, airline fares, or holidays — areas that often see early cuts when consumer confidence wanes.”
While Irish consumer confidence dipped “to two-year lows in April, according to the European Commission survey, sentiment rebounded somewhat in May.”
The decline in confidence was largely “confined to concerns about the broader economic outlook. In contrast, consumers’ expectations regarding their intentions to make major purchases remained more resilient.”
This divergence suggests that while Irish households are “aware of global risks, they are not allowing these concerns to significantly influence their day-to-day or long-term spending decisions.”
Commenting on the figures, Bank of Ireland’s Chief Economist Conall Mac Coille, said:
“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.”
