BOI: Teenage spending grew in June
While outlay fell across both the domestic retail and social sectors, teenagers (13 – 17-year-olds) led the way in the spending stakes
13 July 2023
Bank of Ireland debit and credit card spending in June 2023 dropped by -6% when compared to May’s spending according to the latest Bank of Ireland Spending Pulse. While outlay fell across both the domestic retail and social sectors, teenagers (13 – 17-year-olds) led the way in the spending stakes, recording a +23% rise in outlay compared to the previous month as secondary school classroom doors closed for the summer holidays.
Notably the teenage cohort was alone in recording the only spending spike across the different age groups tracked by the Spending Pulse. Those aged 66 and older produced a spending decline of -8% in June, followed by 56 – 65-year-olds at -7%, and 36 – 45-year-olds at -6%, with these groups perhaps keeping a tight hold on their purse strings until later in the summer.
June proved to be a subdued month however across many business sectors, in keeping with the same month’s figures in 2022 which saw a total spending drop of 4%. Not a single county recorded a positive spend in June, with counties such as Dublin (-7%), Mayo (-6%), Monaghan (-6%), Kerry (-6%) and Donegal (-4%) all experiencing spending dips compared to the previous month.
Not surprisingly many people flocked to foreign climes in June despite the favourable weather continuing at home, with spending rising in Croatia (+71%), Greece (+55%) Italy (+32%), Portugal (+22%) and Spain (+13%).
Social spending in June fell by 5% overall, with fast-food purchases dipping by 5%, pub spending falling by 4% and outlay in restaurants declining by 1%. A social spending pattern for June is emerging within the Spending Pulse, with outlay in this sector very similar to June 2022, in contrast to May 2023 figures which painted a much more positive spending picture across sectors.
“Whilst June’s spending fell, with dips in grocery (-7%), clothes (-6%) and pharmacy (-4%) indicating many people restricted their expenditure, it was no surprise to see teenagers leading the way in the spending stakes given schools started to close,” said Jilly Clarkin, Head of Customer Journeys & SME Markets at Bank of Ireland. “The overall spending drop in June was also predictable, as it reflects the same trend as last year.
“July and August are normally busy months, with all schools closed, children at summer camps and families enjoying well-deserved breaks across Ireland. People will also leave the country and spend abroad so, based on last summer, we may not see a big spike in overall spend next month either. However, July last year saw an uplift in social spending, so hopefully, some sectors see a boost in spending next month.”