Consumer spending declines as people tighten belts ahead of winter

The total monthly consumer spend fell 8% in September, compared to August.

Consumers spending has decreased “considerably” in September compared to previous months as cost pressures bite, showed figures from Bank of Ireland.

Spending in pubs was down by 28%, clothing retail dropped by 12%, and bakeries fell by 19%.

“With consumers currently enduring cost of living challenges exacerbated by rising energy prices and stubborn inflation hikes, it will be interesting to see if these more restrained spending patterns continue over the coming months,” said Jilly Clarkin, head of customer journeys and SME markets at Bank of Ireland.

Spending in restaurants also dropped by 22% and people ordered less from fast food outlets, which posted a decline of 18%. Hotels and resorts also declined by 26%.

Other retail spending also took a hit as supermarkets, florists and beauty spas witnessed monthly declines.

Ms Clarkin was not surprised to see spending declines for September as it marks the end of the summer holidays.

The total monthly spend fell 8% compared to August. Spending dipped slightly more last month compared to the same period last year, but is overall in line with the trend.

She said that people could also be tightening their belts to brace themselves for higher costs, including energy bills, towards the end of the year.

“It won’t come as much of a surprise for many people to see the September spending stats indicating that consumers nationwide pulled back a little last month and saved up for what could well be a harsh winter,” she said.

No county posted a positive spending score in September, with near double-digit drops recorded in Cork, Limerick, Dublin, Sligo, and Mayo.