Consumer spending surges past pre-pandemic levels 

Data from Revolut shows pent up demand for travel means spending on airlines is 65% higher than in August 2019

Figures suggest a spike in Irish consumers booking holidays now for the year ahead. Pic Stephen Collins/Collins Photos

Consumer spending in August jumped 10% ahead of pre-pandemic levels providing retailers and businesses with the much-hoped-for surge in spending as the country continues its reemergence from lockdown.

New figures from Revolut’s 1.5 million Irish customers shows overall spending in August 2021 was well ahead of levels in August 2019, with increases recorded in a range of categories. Sportswear, clothing, groceries, fast food, hardware, gardening and home furnishing were all more than 20% higher. Revolut said the data is adjusted for the growth in its users over the past year.

Pent up demand for travel was also recorded with spending on airlines 65% higher than in August. Combined with recent airline data, this suggests a spike in Irish consumers booking holidays now for the year ahead.

August also saw higher spending on clothing than August 2019, with expenditure up 6% overall. Sales of sportswear, however, have exploded since Covid-19 arrived: spending in that category is up 66% compared to two years ago.

“Every retailer in the country has been hoping to see a post-restriction surge in consumer expenditure predicted by the Central Bank and the ESRI - and the latest Revolut Report appears to show exactly that," Sebastian Hamilton, Head of Public Affairs at Revolut Ireland said.

Even in some hospitality sectors hardest hit by Covid restrictions, spending by Irish consumers is catching up to where it was two years ago. Spending on Revolut by Irish customers in bars was up 1%, while spending in hotels was 5% higher. In both cases, the number of consumers spending was more than 20% lower than in August 2019 - suggesting that while fewer people are going out, they are spending more when they do.

However, the Revolut Report also shows that restaurants and cinemas have still not seen spending by Irish consumers recover to pre-pandemic levels: restaurants are still down by 25%, cinemas by 15% and tourist attractions/museums by 27% compared to August 2019. However, these figures do not take account of the fall in tourist numbers.