Consumers reacted to lockdown by saving more

CONSUMERS reacted to the imposition of Level 5 restrictions by spending less and saving more.

New figures show that an additional €1.7bn was put into savings accounts in banks and credit unions in October. This took total savings levels to a high of €123bn.

The Central Bank said this is the highest level of household savings recorded since it first started measuring savings at the start of 2003.

Separate figures from the Central Bank show that Level 5 restrictions led to a fall in spending on debit and credit cards and a drop in withdrawals from ATMs.

Total card spending, which includes ATM withdrawals, was 13pc below the same month last year.

Although the Level 5 measures impacted on spending, the extent of the impact was much smaller than during the initial restrictions introduced as part of the first lockdown.

But in October, big falls in spending were recorded on restaurants and dining, as eating facilities closed.

Spending on accommodation was down almost 60pc in October when compared with the same month last year.

The restrictions prompted a shift to spending online. E-commerce expenditure was up nearly 19pc compared with October last year, the Central Bank said.

The total number of credit and debit card transactions fell in October from 128 million to 125 million.

There were fewer transactions, but the average spend was higher.

Recent figures from the European Commission estimate that Irish people are saving almost 28pc of their disposable income this year, which is the highest among EU states.