Consumer spending falls further

February sees largest fall in spending since last spring

Figures released today by Revolut shows spending by its Irish customers last month fell 2% on January and 19% on February of last year.

Consumer spending fell again in February as the impact of full lockdown continued to bite, new spending data shows.

Figures released today by Revolut shows spending by its Irish customers last month fell 2% on January and 19% on February of last year.

The data shows that while spending on digital goods, groceries and items related to the home has increased substantially, this has been significantly outweighed by the collapse in spending on leisure, hospitality and travel.

With the current Level 5 lockdown set to remain in place until at least April 5, a similar spending pattern is expected for March. Dr Paul Scanlon, Professor of Economics, Trinity College Dublin said the figures show a second successive month of falling consumer spending and the largest decline since last spring.

"With the course of the virus still unknown, together with delays in the vaccine rollout, consumers face elevated uncertainty in the immediate future," he said. "This could continue to undermine confidence and negatively impact consumer spending in the months ahead.”

According to the data from Revolut, spending on air travel, cinemas, theatres, restaurants and bars are all down more than 90%. Year-on-year, the growth in spending online by Revolut users was 53%. 

Within that overall increase, the 45-54-year-old group saw spending rise by 56%; the 55-64 cohort saw spending grow by 57%, and the 65+ group’s online spending rose by 41% year-on-year.

The data shows some quirks in behaviour during lockdown. Spending on dentists is up 35%, with many dentists saying that people are taking the opportunity to undertake major dental restructuring. 

Spending in music stores (sellers of musical instruments and sheet music, as opposed to CDs or records) was up by 26% - suggesting people are taking the opportunity of lockdown to learn an instrument.