Households banked €5bn in lockdown savings boom Staycations spark transport splurge

IRISH households saved €5 billion during lockdown, latest Central Bank figures show.

Deposits jumped to €5.3 billion between April and the end of June this year as households saved on costs, including childcare, transport and recreational activities.

This compared to just €2 billion for the same quarter last year.

The rise in people holidaying at home has also led to a splurge on accommodation and transport during the month of June.

As the country emerged from lockdown in June, spending in all sectors of the economy recorded a ‘notable’ increase compared to May, with the transport and accommodation

Spending hit a low in mid-April

sectors, in particular, receiving a big boost.

According to the Central Bank’s Credit and Debit Card Statistics report for June, spending on accommodation increased by 131% while spending on transport increased by 80%.

‘This is likely reflective of an increase in people holidaying in Ireland,’ said the report.

The social sector, which comprises the restaurant sector as well as the entertainment sector, also saw a monthon-month increase of 39%.

However, spending in the services sector and social sector is down overall year-onyear. The services sector is down 27% while the social sector is down 29% compared to last June.

lockdown, most sectors of the economy have reopened for business with the only major outliers being bars and pubs that do not serve food.

They will remain closed until at least August 10 if the virus remains under control

The limits on mass gatherings are also set to be increased in August to a maximum of 100 people indoors and 500 people outdoors. The current limits are 50 and 200.

Over the month of June, debit cards were used in 103 million transactions, totalling €4.3 billion with an average spend of €64.62 per transaction which is up 26% from May. Credit cards accounted for 12 million transactions, the average spend of which was

€42, with the total spend totally €757million, up 30% from May.

Spending hit its low point in mid-April this year but has increased by 67% since then.

Spending increases in the retail sector, which is up 21% compared to May and 40% when compared to June last year, is being driven by expenditure in clothing and hardware shops, both of which experienced 51% and 46% increases respectively.

Approximately €2.2 billion was spent online during June, an increase of 16% or €304 milFollowing lion when compared to May. This is also up by €533million on the same month last year. Spending online accounted for 43% of retail card spending during the month which is lower than May. This may be due to ‘the opening of retail outlets’, the report read.

According to the Central Bank, the latest daily data shows that total card spending, including ATM withdrawals, up to July 27, is currently 6% lower than the daily average during July last year.

‘Retail card spending experienced a peak at the beginning of July. Spending subsided slightly in the days that followed, and has been stable for the remainder of the month,’ said the report.

Hardware shops saw 46% increase