Bank of Ireland reports 'resilient' spending with card activity up 6.5% in May

Despite ongoing global uncertainty and trade tensions, Irish consumers have not pulled back on their spending, Bank of Ireland said. Credit: Damian Coleman

Irish consumers continued to display confidence in May, with Bank of Ireland card spending rising by 6.5% annually. 

The rise in credit and debit card activity marked another month of strong growth in consumer activity, the lender said, with the "robust" growth significantly outpacing inflation, suggesting household spending remains a key driver of economic momentum. 

Despite ongoing global uncertainty and trade tensions, Irish consumers have not pulled back on their spending, Bank of Ireland said, with the data showing no evidence of a slowdown in expenditure, even in categories typically sensitive to economic sentiment.

Retail spending in May rose by 3.6%, which Bank of Ireland said reflected steady demand for clothing, groceries and household items. Meanwhile, spending on services rise by 3.7% in the month, underpinned by continued demand for personal care, transport and professional services. 

Social spending was also up in the month, rising by 6.4%, with notable increases in restaurant and accommodation expenditure. 

Restaurant spending alone climbed 6.3%, the bank added, well above the 3.4% inflation rate for this category. Likewise, accommodation spending also rose by 5.6%, with prices in this segment remaining broadly stable.

Importantly, Bank of Ireland said there was no sign of a decline in spending on ‘big-ticket’ items such as furniture, electrical goods, airline fares, or holidays, areas that often see early cuts when consumer confidence wanes.

While Irish consumer confidence dipped to two-year lows in April, according to the European Commission survey, sentiment rebounded somewhat in May, the lender noted. 

The decline in confidence was largely confined to concerns about the broader economic outlook, Bank of Ireland said. 

In contrast, consumers’ expectations regarding their intentions to make major purchases remained more resilient. This divergence suggests that while Irish households are aware of global risks, they are not allowing these concerns to significantly influence their day-to-day or long-term spending decisions.

Commenting on the figures, Bank of Ireland’s Chief Economist, Conall Mac Coille, said: "Irish consumers are understandably cautious about global developments, but the data shows they remain confident in their own financial outlook. 

"The 6.5% rise in card spending in May reflects a resilient economy and a willingness to continue making key purchases. This broad-based growth across sectors highlights the strength and stability of household consumption, even in the face of international uncertainty."