Consumers are spending money on ‘takeaways, restaurants and bars’ despite cost of living crisis
Irish consumers are spending more on healthcare despite massive increases in the cost of public services, according to new payments data from Revolut.
Consumer spending rose 3% in June from May. Data from Revolut’s 1.9million Irish customer accounts showed spending rose 23% in the month from June last year when some Covid restrictions remained in place.
The rising cost of living was evident to consumers last month, with Revolut customers spending 34% more on utility bills in June compared to May.
Supermarket spending was unchanged from May to June as consumers faced in-store price hikes.
Grocery price inflation hit 6.5% in June, according to the latest figures from Kantar.
Despite the impact of rising costs, consumers spent 34% more on meal delivery last month than in May.
Restaurant dining also rose 8%, while spending on bands and orchestras rose 50% at the start of the wedding season.
Boat rentals rose by nearly three-quarters in the month, while spending on tourist attractions and museums in June also rose by more than a fifth.
Figures from Revolut also indicated consumers were spending less on their cars last month, with a 4% drop in spending recorded at petrol stations.
Customers spent 5% less on parking, while there was also a 4% drop in the amount spent at car repair shops in Ireland in June.
Revolut said customers appeared to be reducing car use rather than “absorbing the increases”.
This was exemplified by a 17% month-on-month increase in bus tickets. Other commuter transport rose 12% last month, while consumers spent 7% more on taxis.
Consumers also spent 6% less last month on air travel amid well-publicized challenges facing travelers at airports around the world.
Some Revolut customers have been looking for other opportunities to get away from it all, with spending on cruises up 16%.
European public affairs chief Sebastian Hamilton said Irish consumers were eager to enjoy the summer despite continued economic uncertainty.
“Many consumers are looking for ways to reduce their spending in the face of rising energy costs, in particular, they seem to be reducing their use of the car in favor of public transport in response to rising fuel prices,” said he declared.
“However, our data also shows that despite these cautious measures, consumers are still taking advantage of takeout, restaurant and bar deliveries.”