Florists and landscapers were the big winners last month as the good weather drove spending, but people were generally more careful with their money than the same period last year, new data from Bank of Ireland shows.
The bank’s card spending data for May showed a 3.6 per cent decline in consumer expenditure overall compared to May last year.
However, the bank’s analysis shows that despite the overall drop in debit and credit card spending, several sectors still saw strong growth.
“While overall card spending softened in May, the data shows consumers are still willing to spend on fun experiences, digital services and select retail, even as pressures on discretionary budgets remain,” said Bank of Ireland head of retail sector Owen Clifford.
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The run of good weather late in May drove a 61.9 per cent jump in spending with florists and a 55.9 per cent increase in outlay on landscaping services.
Electrical goods saw the strongest increase in retail spending, rising 11.8 per cent, while subscription spending surged by 12.8 per cent, highlighting ongoing consumer demand for digital services. Spend on clothing however declined, falling 7.9 per cent.
Hospitality performed strongly, with spending in restaurants and bars up 6.9 per cent year-on-year, and entertainment up 2.8 per cent, with consumers “continuing to prioritise fun experiences”, the bank said.
The data suggests there was a softening in travel demand with spend on air travel down 6.4 per cent, while spend on car rentals slowed 6.7 per cent.
Charitable donations slipped slightly by 1.8 per cent, which the bank said points to tighter discretionary budgets. There was also a fall in ATM withdrawals, down 7.3 per cent compared to May last year.
Essential spending remained broadly stable – grocery spending saw a modest increase of 0.63 per cent, while spend on health was flat. Smaller increases were recorded in education, which was up 1.2 per cent, and professional services which climbed 2.3 per cent.
