Bank of Ireland data shows Christmas cheer for retailers

It’s no surprise that more and more people are relying on their card or phone for day-to-day spending instead of cash. The truth is that, for many, tapping a phone or card is a lot more convenient than carrying notes and coins.

The switch to cards has also created a gold mine of data for the banks in terms of just how much their customers are spending and what they’re spending it on. To that end, we now get regular data from Bank of Ireland and AIB on spending patterns, and as we get it quickly, it is invaluable for measuring the health of the economy.

With that in mind, Bank of Ireland’s latest credit and debit card data shows spending rose 5.7 per cent in December. Importantly that was higher than the 3.2 per cent inflation rate, indicating an overall increase in spending for Christmas.

Spending on electrical goods was up by 6.3 per cent compared to a year ago, while services spend spiked 5.7 per cent. About 2.5 per cent more was forked out in restaurants and pubs while retail saw its share increase 1 per cent.

Retrofitting will heat your house but freeze your finances

Will Zurich’s deal to buy RedClick trigger wave of tie-ups among insurers?

Intravenous foods and medicines: ‘A long way from milking cows or walking the crops’

Should I steer clear of car insurer who does not offer a no claims bonus?

“These spending figures are strong and in line with expectations, with Q3 2025 national accounts showing that annual consumer spending grew robustly in the first 9 months of the year, up 2.9 per cent on average,” said Bank of Ireland chief economist Conall MacCoille.

The data paints a largely optimistic picture of the economy during December, with people clearly confident enough in their own prospects to hit the shops over the Christmas period.

One notable decline was the continued fall-off in cash usage. ATM withdrawals fell once more. This time it was a 3.7 per cent drop and cash withdrawals accounted for just 13 per cent of card spending. That’s less than half the total before the pandemic. Such card usage has now fallen every year for the past five years.

Frustrating as it can be to see a retailer with a notice on the counter saying “card payments only,” it seems the number of such signs will only increase in the months and years ahead.

[ AIB plans to launch ‘next generation’ mobile app this yearOpens in new window ]