Consumers spending more on retail and air travel in phase 2 of Covid-19 lockdown exit

With more and more restaurants and cafes turning to takeaway and delivery services, spend by consumers was up 63%. Picture: Simon Dawson/Bloomberg

Analysis of Bank of Ireland debit card transactions over the first full week after the second phase lifting of restrictions found grocery spending fell slightly while there was an increase in spending on transport and takeaways.

The analysis tracked debit card spending from June 8 to June 14 and compared it with the baseline average spend during the lockdown, from March 28 to June 7. While grocery shopping was down slightly by 2%, spend on other areas of retail was up by 56%.

With an increasing number of countries internationally opening up again for foreign visitors, spend on air travel was up by 139%, albeit from a low level during lockdown. In a similar trend, holiday planning was clearly a focus for consumers with debit card spend on booking accommodation up 101%. With more and more restaurants and cafes turning to takeaway and delivery services, spend by consumers was up 63%, and the return of horseracing in Ireland dovetailed with a 57% increase in spend on gambling.

Spend on passenger transport (trains, buses, taxis) was up 115%, as increasing numbers of shoppers travelled to urban centres. Meanwhile, debit card spend on entertainment dropped by 11%, with gaming down 21%, perhaps a sign that people weren’t spending so much time in their homes as restrictions eased.

John O’ Beirne, Director of Products, Bank of Ireland said a natural impact from the easing of restrictions is that we are leaving our homes more often. "This is clearly reflected in more of us spending on passenger transport services and spending less on entertainment such as streaming services.

Driven by takeaway services, spend on restaurants also increased last week albeit compared to a low baseline during the lockdown, and hopefully this trend continues.