Consumer spending surges as hospitality sector partially reopens

New figures show big jump in spending in pubs, hotels and restaurants last month

Consumer spending continued to rise in June, up 7 per cent on May. Photograph: Nick Bradshaw for The Irish Times

Consumer spending continued to rise in June, up 7 per cent on May. Photograph: Nick Bradshaw for The Irish Times

 

Consumers spent more than €90,000 an hour at pubs last month as the hospitality sector partially reopened, new figures show.

Spending in pubs and off-licences jumped 304 per cent as Covid restrictions began to be lifted with spending in hotels and restaurants rising 225 per cent and 22 per cent respectively.

Overall, consumer spending continued to rise in June, up 7 per cent on May as more sectors within the economy started to reopen, data from AIB shows. The busiest day for spending was June 25th, coinciding with pay day for many people.

Those under the age of 25 recorded the highest increase in spending last month, up 404 per cent versus May, while those between 35 and 44 recorded the smallest increase, up 239 per cent.

Surge

Spending on airlines was up 14 per cent in May with sales of homewares rising 22 per cent. Almost all categories showed an increase in spending although groceries were down 2 per cent as more consumers ate out.

“Having partially reopened in June, the hospitality sector saw a surge in spending, albeit from a low base, as consumers flocked to pubs, restaurants and hotels throughout the month. This was a welcome increase in spending for businesses after many months of being closed,” said John Brennan, head of SME at AIB.

“Society’s support for those in the hospitality sector, as well as all other sectors impacted by Covid-19, will be critical to the recovery of these businesses as we emerge from the pandemic and slowly return to normality,” he added.