Easter optimism trumped nervousness over US trade tariffs.
Irish consumer spending jumped 8.3% in April compared to the same month last year, according to data released today by Bank of Ireland.
The significant increase, up from March’s 5.9% growth, was largely attributed to the timing of Easter, which fell entirely within April this year.
“Irish consumers may have been nervous about US tariffs and a more uncertain economic outlook in April, but the hit to sentiment hasn’t been sufficient to alter key spending decisions”
Bank of Ireland customers spent €3.7bn on credit and debit cards during the month, with strong performance across retail, services, and social sectors despite a dip in consumer confidence to a two-year low.
Broad-based growth across sectors
Retail spending rose 5.4% year-on-year to €1.3bn, while service-related expenditure increased by 5.9% to €700m. Social spending showed particularly strong recovery, jumping 7.1% to €340m after a subdued first quarter.
Grocery purchases climbed 7.3% to €613m, while big-ticket categories demonstrated resilience with electrical goods up 9.1% and hardware increasing 5.3%.
Tourism and entertainment show strong recovery
The Easter holiday period provided a significant boost to Ireland’s hospitality sector, with hotel spending surging 10% and overall accommodation expenditure up 10.5%, reflecting strong domestic and international tourism activity.
Entertainment spending rose 6.2% to €98m, while dining and drinking establishments saw an 8.2% increase to €222m. Cinema spending recorded a remarkable 43% year-on-year increase, while tourist attractions and spa services both experienced 26% growth, likely influenced by belated Mother’s Day celebrations.
Cash withdrawals from ATMs remained flat in April at approximately €500m, though they were down more than 5% in the first quarter compared to 2024, continuing the trend toward digital payment methods.
Economic outlook
“Irish consumers may have been nervous about US tariffs and a more uncertain economic outlook in April, but the hit to sentiment hasn’t been sufficient to alter key spending decisions,” said Bank of Ireland’s chief economist Conall Mac Coille.
“The €3.7bn spent on Bank of Ireland credit and debit cards in April was up 8.3% on the year, an acceleration from March.
“True, the timing of Easter gave a seasonal lift, but there was broad based growth across a range of sectors, from groceries and entertainment to hotels and hardware. Furthermore, spending growth is now well in excess of CPI inflation at 2.2%, embodying substantial real gains in consumption.”
Main image at top: Photo by Kenny Eliason on Unsplash
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