Consumer spending falls in Limerick as cost of living crisis worsens

A NEW analysis of consumer spending shows there was a 6% reduction in Limerick last month, which was higher than the overall national reduction.

The debits and credit card analysis, conducted by Bank of Ireland, reflects the cost of living crisis and the concerns that people have for the coming months. 

In addition to rising inflation, the general overcast weather during June are considered some of the reasons for the decline in expenditure.

Commenting on analysis, Jilly Clarkin, Head of Customer Journeys and SME Markets at Bank of Ireland said: “Cost of living increases are a concern for everyone, and in that context it is not surprising to see June’s spending levels dropping a bit last month.” 

A national outlook saw total spending fall by four percent.

Social spending fell by 5% in total as consumers scaled back their pub spend which fell by eight percent. Expenditure on fast food fell by 4% spending at restaurants fell by 3% compared to May.

However, the cinema industry recorded an increase in expenditure (25%) - possibly due to a number of high-profile releases such as Top Gun Maverick.

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According to Bank of Ireland, consumer spending on clothing and groceries fell by 6% in June.

Further afield, holiday-makers flocked back to popular European locations following a relative decline in May, with June spending jumps recorded in Italy, Portugal, Spain and France.

“The spending data analysed by Bank of Ireland over the past few months has produced some uneven trends, so while total consumer outlay rose significantly in May, it then fell again in June. It’s probably too early to identify a clear trend, but some people may be getting more prudent with their money as they look ahead to the second half of the year,” Ms Clarkin said.

“We’re also entering peak holiday season, so some consumers could just be holding their spending until they get away,” Ms Clarkin added.