Credit Card Spending Up 5.7% in June
Irish Consumer Spending remains resilient: June 2025 Data reveals Robust Growth Amidst Economic Headwinds
By victoriasterling
Recent figures released by Bank of Ireland paint a picture of enduring consumer confidence and robust spending in Ireland, even as global economic uncertainties persist. In June 2025, credit and debit card spending saw a notable year-on-year increase of 5.7%, demonstrating a healthy appetite for consumption that outpaces inflation. This sustained growth underscores the resilience of the Irish economy and the spending power of its households.
Key Trends in June 2025 Consumer Spending
The latest data from Bank of Ireland highlights several key areas of consumer activity,offering insights into spending habits and economic sentiment.
Spending Growth Outpaces Inflation
The 5.7% rise in card spending in June is notably meaningful as it comfortably exceeds the current inflation rate of 1.8%. This indicates that consumers are not only spending more but are also experiencing real growth in their purchasing power. While this figure represents a slight moderation from the 6.5% increase observed in May, it remains a strong indicator of economic vitality.
Resilience Against Global Uncertainty
Despite concerns surrounding US tariffs and a recent dip in consumer confidence, the June spending figures suggest a limited impact on household expenditure. This resilience points to underlying economic strengths, such as a stable job market and income growth, wich are bolstering consumer sentiment and spending behavior.
Sectoral Performance: Holidays and Retail Shine
The travel and tourism sector experienced a significant uplift in June. Spending on accommodation rose by 4.3% year-on-year, while car rental expenditure saw a remarkable surge of 16%. This indicates a strong rebound in holiday activities, with Irish consumers prioritizing travel and leisure.
The retail sector also benefited from increased spending, particularly in electrical goods, which saw a 16% rise. This suggests a healthy demand for durable goods,potentially driven by upgrades or new purchases. Conversely, clothing sales experienced a slight decline of 2.1%. However, this decrease is contextualized by a fall in consumer prices for clothing and footwear over the past year, suggesting that the volume of goods purchased may not have significantly diminished.
The Continuing shift Away from Cash
A prominent trend highlighted by the Bank of Ireland data is the ongoing move away from physical cash towards digital payment methods.
Declining ATM Withdrawals
ATM withdrawals in June were down by 3.6% year-on-year.This decline signifies a continued preference for electronic transactions, with cash now accounting for only one in every eight euros spent. this shift reflects a broader societal trend towards convenience and the increasing adoption of digital payment technologies.
Economic Outlook and Expert Commentary
The robust consumer spending observed in June suggests that the Irish economy may be performing even better than initially forecast.
Forecasts and Real Gains
The data indicates that consumer spending is expanding at a pace that could exceed Bank of Ireland’s initial forecast of a 2.4% real gain for 2025. This performance is more aligned with the upwardly revised 2.9% pace seen in 2024, signalling sustained economic momentum.
Conall Mac Coille, Chief economist at Bank of Ireland, commented on the findings, stating that Irish consumer spending “remains resilient and robust.” He attributed this strength to strong performance in holiday and retail sectors, particularly in accommodation, car rentals, and electrical goods. Mac Coille further emphasized that despite global economic uncertainties and a dip in consumer confidence, Irish households are spending with confidence, supported by solid job creation and income growth. He also reiterated the ongoing shift towards digital payments, with ATM withdrawals decreasing and digital transactions dominating everyday spending.
Conclusion: A Resilient Consumer Base
The June 2025 Bank of Ireland data offers a compelling snapshot of a resilient Irish consumer base. Despite external economic pressures, spending remains strong, driven by key sectors like travel and retail, and supported by a healthy employment market. The continued migration towards digital payments further underscores the evolving landscape of consumer behaviour. As we look ahead, this sustained consumer confidence and adaptability are likely to remain key drivers of economic stability and growth in Ireland.