Consumer expenditure eases in May
Bank of Ireland’s latest Spending Pulse data shows a slight easing in consumer expenditure in May, with total card spending down 3.6% compared with the same month last year, as households continued to balance discretionary spending amid ongoing cost pressures.
Despite the overall decline, the data highlights a mixed picture across sectors, with several categories recording solid growth, particularly those linked to lifestyle, services and improved weather conditions late in the month.
The Bank of Ireland analysis found that the arrival of better weather in the latter part of May contributed to a sharp rise in seasonal spending, with florists up 61.9% year-on-year and landscaping services increasing by 55.9%, as consumers invested in home and garden improvements.
Retail spending also showed pockets of strength.
Electrical goods recorded the strongest growth, rising 11.8% compared with May 2025, while subscription services climbed 12.8%, reflecting continued demand for digital platforms and recurring online services.
Hospitality remained resilient, with spending in restaurants and bars up 6.9% year-on-year. Entertainment also edged higher, increasing by 2.8%, suggesting consumers are still prioritising leisure and social experiences even as wider spending slows.
However, some categories showed softness.
Clothing expenditure fell by 7.9%, while travel-related spending weakened, with air travel down 6.4% and car rentals declining by 6.7%, pointing to reduced appetite for discretionary travel.
ATM withdrawals also dropped by 7.3%, and charitable donations slipped by 1.8%, indicating tighter household budgeting.
Essential spending remained relatively stable overall.
Grocery spending rose marginally by 0.63%, while health-related expenditure was broadly flat at -0.05%.
Smaller increases were recorded in education (+1.2%) and professional services (+2.3%).
Commenting on the findings, Owen Clifford, Head of Retail Sector at Bank of Ireland, said consumers are still prioritising experiences and digital services despite broader caution.
Retail spending also showed pockets of strength.
“While overall card spending softened in May, the data shows consumers are still willing to spend on fun experiences, digital services and select retail, even as pressures on discretionary budgets remain,” he said.
He added that higher travel costs and global uncertainty may be influencing reduced demand for overseas trips, and suggested it will be important to monitor whether staycation spending increases over the summer months.
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