New figures show a modest increase in consumer spending during 2023

Increased spending is set to continue over the festive period, said AIB’s head of SME banking, John Brennan. Picture: Stephen Collins/Collins Photos

AIB spending figures showed a modest rise in overall consumer spending, adjusting for price inflation in the first 11 months of the year, but surged in nominal money terms.

AIB said, when excluding inflation, spending jumped 8% this year but with inflation forecast to be around 5.3%, real spending rose by around 3%.

The AIB Year in Review spending report showed August was the busiest month for restaurants and increased spending in hair salons and beauticians was recorded in May.

Other recreational spending such as concerts drove up consumer spending this year with Taylor Swift, Coldplay and Bruce Springsteen all announcing tour dates for Ireland.

The data was compiled from over 800 million card transactions carried out by AIB customers in store and online from January to November.

Increased spending is set to continue over the festive period, said AIB’s head of SME banking, John Brennan.

“December is set to be a busy month for retail and hospitality meaning many businesses will finish the year out strong,” he said.

Mr Brennan also said he expects many consumers to splash out on holiday bookings in the early new year.

Meanwhile, household savings slipped further earlier this year amid inflation cost pressures, recent figured from the Central Statistics Office (CSO) suggested.

The household saving rate was just under 9.6% in the July to September period, a fall from 10.9% from April to June.

Statistician in the CSO national accounts analysis and globalisation division Peter Culhane said this is the first time the household savings rate has fallen below 10% in three years, “but leaves it at a similar level to pre-pandemic savings in 2019”.

Many consumers ate into their extra funds as post-pandemic demand stayed strong despite rising prices, the CSO figures indicated.