Credit and debit card spending rose by 5.7% in June
Credit and debit card spending rose by 5.7% in June compared to the same month last year, according to new figures from Bank of Ireland.
The bank said the data shows consumer spending remained robust last month and “well ahead” of the rate of inflation of 1.8%.
The figure is down from the 6.5% year-on-year increase recorded in card spending by Bank of Ireland customers in May.
However, BOI said the June numbers indicate “little spending impact from US-tariff related uncertainty and the recent dip in consumer confidence.”
Holiday spending was up sharply last month, with accommodation up 4.3% year-on-year, while spending on car rentals increased by 16%.
The bank said the retail sector was helped by a spike in electrical goods sales, which rose by 16%.
While 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.”
Notably, the move away from households using physical cash is continuing.
Decrease in ATM withdrawals
The BOI data shows ATM withdrawals were down 3.6% on the year, with cash now representing just one-in-eight euro spent.
The report said the data suggests 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.”
Bank of Ireland’s Chief Economist, Conall Mac Coille, said the figures show that Irish consumer spending “remains resilient and robust.”
He said the growth was driven by strong holiday and retail activity, especially in accommodation, car rentals, and electrical goods.
Despite the global uncertainties and a dip in consumer confidence, Mr Mac Coille said Irish households “continue to spend confidently, supported by solid job creation and income growth.”
He also noted that the indicates that “the shift away from cash also continues, with ATM withdrawals down and digital payments now dominating everyday transactions.”
Article Source – Credit and debit card spending rose by 5.7% in June – BOI – RTE