Spending continues to increase despite concerns over re-opening

The level of debit and credit card spending in the economy has risen steadily since January. Picture: Damian Coleman

Debit and credit card spending in Ireland jumped 5% last week as the recovery in spending continues with the easing of restrictions.

Figures from the Central Bank show total spending in the week to Sunday, June 20 increased by €72m compared to the previous week. In-store spending accounted for 58% of all card point-of-sale spending and rose by 4%, or €29 million from the previous week.

Spending in the groceries, other retail and transport sectors all recorded increases when compared to the previous week, while spending in the accommodation and restaurant sectors were marginally lower following a number of weeks of strong spending growth.

Card spending in Ireland surged to more than €300m per day in the run-up to Christmas. Following the reintroduction of Level 5 restrictions at the end of December spending had plummeted to less than €150m.

Since then there has been a steady recovery with daily card spending now between €200m and €250m per day.

However, uncertainty remains over the planned withdrawal of some of the final Covid restrictions in relation to indoor dining and drinking. 

Business group Ibec has called for a balanced and transparent decision-making process on the re-opening timeline.

“Any decision on this needs to take all of the societal impacts into account," Sharon Higgins, Ibec Director of Membership and Sectors said. 

"The context in which we are operating has changed dramatically and, while the health consequences are an important dimension, so too are the livelihoods of those driving Ireland’s Experience Economy."

"The Experience economy encompasses hospitality, retail, travel, food, drink, tourism, entertainment, and technology. It reaches deep into the supply chain, supporting business and employment in many of the hard to reach but critical elements of the economy and society."

"To consider delaying the reopening of this significant part of our economy during peak holiday season lacks any perspective on those most impacted by the pandemic, including; the consumer, be they senior citizens or young people, or the providers across the regions, be they large or small businesses, suppressed for well over a year.”