Card spending declines as Irish consumers cut back

Despite monthly declines, overall card expenditure was up 11% from July 2021, when a number of public health restrictions limited certain in-person spending.

Consumers are cutting back on card spending amid a growing cost-of-living crisis and high levels of inflation.

Figures from the Central Bank revealed a 2% decline in total card spending in July compared to the previous month.

The monthly total of card spending fell to €8bn during July with ATM transactions at €1.16bn. Point of sale transactions declined by 4% from June and totalled €6.88bn.

Despite monthly declines, overall card expenditure was up 11% from July 2021, when a number of public health restrictions limited certain in-person spending.

Meanwhile, with the holiday season in full swing, in-person card expenditure outside of Ireland saw a 127% annual increase to €535m.

Due to an absence of travel restrictions, the transport sector has continued to see a large year-on-year increase in expenditure, with travel spending in July increasing by 109% compared to July 2021. The dining sector reported the second highest year-on-year increase of 35%.

However, the retail sector experienced a decline in spending with card expenditure falling on a month-on-month basis by 3%.

Debit card spending reached €7bn during July, representing 87% of total card spending, while credit card spending totalled €1bn.

ATM transactions continue to remain subdued compared to pre-pandemic levels, and remain 14% below February 2020 figures.

The volume of point of sale card transactions was 4% higher in July when compared to July 2021, while the average value of transactions remained relatively stable at €44.05 each.

Online versus in-store spending 

Total in-store spending remained unchanged in July compared to June and totalled €3.8bn. 

In comparison, total online expenditure declined to €3bn, a fall of 4% compared to June. However, the figures revealed that there has been a 19% increase in online spending compared to July 2021. Online spending was 44% of all point-of-sale expenditure in July.