Card spending by Bank of Ireland customers up 5.7% in June | Holiday related spending up sharply in June | ATM withdrawals decline.
Credit/debit card spending by Bank of Ireland customers was up 5.7% in June compared to the same month last year, well ahead of CPI inflation at 1.8%, the Bank has revealed.
The figures indicate substantial real price adjusted gains for Irish households and little spending impact from US-tariff related uncertainty and the recent dip in consumer confidence.
“Strong holiday and retail activity, especially in accommodation, car rentals, and electrical goods, is driving growth”
Holiday spending was up sharply in June, with accommodation up 4.3%, car rentals up 16%, while a spike in electrical goods sales (+16%) helped the retail sector. The data also show another drop in cash usage by households, ATM withdrawals were down 3.6% on the year, with cash now representing just one-in-eight euro spent.
Overall, the credit/debit card data suggest consumer spending is expanding faster than Bank of Ireland’s current forecast for a 2.4% real gain in 2025, closer to the upwardly revised 2.9% pace seen in 2024.
Credit/Debit card spending in June up 5.7% on the year
Bank of Ireland credit/debit card spending was up 5.7% on the year. This is still a strong pace, well above the current 1.8% pace of Irish CPI inflation, indicating robust real (price-adjusted) gains in consumer spending for Irish households.
The data continue to indicate Ireland’s rapid pace of job creation (3.3%) and pay growth (5.6%) are driving substantial real gains in consumer spending, faster than Bank of Ireland’s current forecast for a 2.4% expansion in 2025.
Holiday related spending and electrical goods drive expenditure higher
Services spending grew by 5.6% in June year on year. Accommodation spending was up 4.3% on the year, and on car rentals by 16%. Within the retail sector, electrical goods sales were particularly buoyant, up 16% on the year.
However, clothing sales were down 2.1% on the year, albeit reflecting that consumer prices for clothing (-2.4%) and footwear (-1.8%) have fallen over the past year.
ATM withdrawals continue to decline, down 3.6% in the year to June. Cash now represents just one-in-eight euro spent. This is a stark change from the period preceding the Covid19 pandemic when cash still represented one-third of transactions.
Consumer spending expanding faster than initially thought
The Central Statistics Office’s annual revisions to Ireland’s national accounts data revealed that consumer spending expanded at a substantially sharper 2.9% pace in 2024 (or 7% in nominal terms) than the 2.3% initially estimated.
The revision is consistent with other indicators such as the 7.3% rise in VAT receipts to €23bn in 2024 and 7.5% rise in gross household disposable incomes.
Nonetheless, household savings also remain strong. The latest Central Bank data show household deposits grew by 6.5% to €165bn in May, close to the fastest pace in seventeen years (excluding the pandemic period).
“Irish consumer spending remains resilient and robust, with our card data showing a 5.7% annual rise in June, well ahead of inflation at 1.8%,” said Bank of Ireland’s Chief Economist Conall Mac Coille.
“Strong holiday and retail activity, especially in accommodation, car rentals, and electrical goods, is driving growth. Despite global uncertainties and a dip in consumer confidence, Irish households continue to spend confidently, supported by solid job creation and income growth. The shift away from cash also continues, with ATM withdrawals down and digital payments now dominating everyday transactions.”
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