The rising cost of essentials such as fuel and groceries has led to a reduction in the amount people spend on clothing and leisure facilities, according to the latest figures.
The latest monthly consumer spending report from Revolut, the global financial super app with more than 1.9 million customers in Ireland, shows consumers are spending more on holidays year after year, while spending on groceries, restaurants and fuel are increasing month by month. .
In contrast, spending on clothing purchases and leisure activities such as sports clubs and cinemas fell.
Supermarket spending rose 6.6% per consumer in July compared to June. However, looking back from last year, grocery spending actually fell -4% per consumer in July 2022, compared to July 2021, suggesting that many are looking for cheaper items.
As petrol prices fall in Ireland, new data from Revolut shows that spending on fuel at service stations increased by 3.9% per consumer in July compared to June.
Additionally, spending on fuel increased by 26% per consumer in July 2022, compared to July 2021. Many opted for public transport, as spending on buses increased by 6.5% per consumer in July, compared to June, and spending on trains increased by 6.6. %. Overall, the increase in transport expenditure was 6.3% per consumer in July 2022, compared to June 2021.
While the price of a popular cheeseburger rose to €1.70 last week, new data from Revolut shows spending at fast food outlets rose 5.7% per consumer in July compared to June.
Overall restaurant spending rose 11.3% per diner in July compared to June. Additionally, restaurant spending increased by 21.6% per consumer in July 2022, compared to July 2021.
New data from Revolut suggests holidaymakers are cutting back on some of their spending as holiday prices rise. Data shows that spending on airlines increased by 13.7% per consumer in July 2022, compared to July 2021, spending on cruise lines increased by 52.5%, spending on tourist attractions increased by 19% and spending in hotels and resorts increased by 80.5%.
However, data suggests some travelers are skipping stores. Spending at airports was down -11% per consumer in July 2022, compared to July 2021, spending at duty-free shops was specifically down -18.8%, and car rental spending did not increase. not keep up with inflation and fell -1%. Overall, the increase in travel spending increased by 16% per consumer in July 2022, compared to July 2021.
As inflation rises, we’re not just cutting supermarket luxuries. Spending on clothing purchases and leisure activities is declining or stagnating. Data from Revolut shows clothing store spending fell by -5.3% per consumer in July, compared to June, art gallery spending was down -9.5%, spending on sports clubs were down -7%, spending on cinemas was down -6% and spending on aquariums was down -4%.
Overall, entertainment spending was down -8.2% per consumer in July 2022, compared to July 2021, and shopping spending lagged inflation and only saw a decline. 1.7% increase.
A Revolut spokesperson said the latest data from Revolut suggests Irish consumers are adjusting their spending habits to reduce leisure activities such as clothes shopping and going out.
“Many consumers are looking to prioritize spending as inflation rises. Data suggests consumers are looking for cheaper brands in supermarkets to save money for treats in restaurants.
“Similarly, the reduction in spending on clothing and outings could be to favor travel. After a few years of restricted travel, consumers are looking for a summer away. However, they are careful where they spend, focusing their money on hotel and flight bookings and avoiding the airport shops.
With millions of customers, Revolut is able to deliver lightning-fast, high-frequency anonymised and aggregated data on consumers’ general spending habits.
Revolut data is used by governments in multiple jurisdictions for analytics and forecasting. In Ireland, data from Revolut has been used in various Department of Finance bulletins and has been quoted in the 2021 budget forecast.
Revolut has 1.9 million customers in Ireland, where more than a third of its 5 million people (and half of adults with smartphones) use Revolut.