Restaurants and hairdressers have received a boost post-Covid but people are becoming more cautious about spending

Irish consumers have spent more on dining out, personal care and holidays this year, but inflation concerns are making them more cautious, surveys show.

Payments app Revolut’s ata found spending and savings rose in 2022 compared to lockdown levels in 2021, but a Bank of Ireland survey found people are concerned about rising prices and are in may be able to save less in the future.

People spent 50 per cent more in restaurants this year than last year, according to Revolut, which has more than two million customers in Ireland. Ireland was in lockdown for part of 2021.

Despite rising prices, grocery spending fell 7 percent — excluding 18-24 year olds, who spent 10.4 percent more — while food delivery spending fell 5.7 percent year-on-year.

Irish people spent 17.7 per cent more at hairdressers, hair salons and beauticians but 1 per cent less at pharmacies. They spent 1.6 percent less on clothing, according to Revolut’s annual consumer spending report.

People are traveling more abroad and spending in three countries on average over the past year, up 23.4 percent from 2021. The most popular countries were Great Britain, the USA and Spain.

Spending on media, books, videos and music grew 4.3 percent, with Netflix, Amazon’s Prime Video and Disney+ being the most popular services.

Vicinity

The Irish spent 17.7 percent more at hairdressers, hair salons and beauticians. Photo: Getty Images

But savings are up 52 percent over the past year, while the number of active people trading crypto on Revolut in Ireland is up 61 percent year-on-year.

Meanwhile, rising prices are the top concern for Irish consumers, according to Bank of Ireland’s latest Savings and Investments Index, with people reporting a reduced desire to save.

More than a quarter (26%) of people said inflation was their top concern in the fourth quarter, according to the Bank of Ireland’s Savings and Investment Index, down slightly from the 29% of people who said the same thing three months ago said.

With prices rising, 58 percent of people said they were saving nowhere near what they should be, or a little less than they should be, a six-point increase from a year earlier.

Desire to save was 28 points below its pandemic high, although 36 percent still think it’s a good or very good time to save, and 35 percent said that in terms of saving, they’re “about there where I should be”.

Kevin Quinn, Bank of Ireland’s chief investment strategist, said the results were at odds with how markets view the path of inflation.

“Right now the market view is that inflation has already come down and we will see much lower levels of inflation in the coming year. That still has to get through to the consumer.”

The reduced desire to save is also “strongly influenced by the cost of living crisis”.

https://www.independent.ie/business/irish/restaurants-and-hairdressers-got-post-covid-boost-but-people-are-growing-wary-of-spending-42237148.html Restaurants and hairdressers have received a boost post-Covid but people are becoming more cautious about spending

Fry Electronics Team

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