Card spending continues to rise despite end of Covid restricitons

Consumer spending rose year on year, new data from the Central Bank shows, with card spending continuing to rise and online expenditure performing well.

Total card spending was 30 per cent higher than in February 2021, or €1.6 billion up year on year and just over €1.1 billion higher than just before the pandemic in February 2020. That figure includes ATM withdrawals, which were 20 per cent higher year on year at €972 million, but still lagged pre-pandemic figures.

In-store spending was also higher, rising just over €1 billion to €3.1 billion, a 51 per cent increase.

Covid restrictions in place in February 2021 limited in-person spending. But figures for February 2022 also showed continued strength in online spending, which increased by 16 per cent year on year to €2.8 billion.

Soaring cost-of-living will hit some worse than others

---

Ireland’s exposure to what the US decides on corporate tax shown up once again

---

Inflation-easing measures should be targeted, Makhlouf says

---

Strong demand drives mortgage activity

---

Spending was higher across the sectors, although groceries and electrical goods bucked that trend, with both showing declines.

Spending on services rose year on year, up 80 per cent or €656 million. Transport and accommodation sectors saw the largest increases, at 408 per cent and 511 per cent respectively, with both sectors roaring back to life after the restrictions that dampened spending in 2021.

However, on a monthly basis, February was down 1 per cent compared to January figures. A total of €6.9 billion was spent on cards during February, a month when total retail spending was down 3 per cent, or €87 million.

Spending on groceries fell 4 per cent, but transport, accommodation and restaurants spending saw gains as Covid-19 restrictions were relaxed. Social spending rose by 7 per cent, or €46 million, compared to the previous month, and 100 per cent, or €332 million year on year.

Spending was largely unchanged in March compared to the previous month, and 25 per cent, or €963 million, higher than in March 2021.

The relaxing of Covid-19 restrictions also saw more people travel outside the country, with spending outside Ireland up 10 per cent or €24 million on the month and 136 per cent or €150 million year on year.