In Dublin, retail spending saw a boost in the early summer of 2024, as reported by the latest MasterCard SpendingPulse™ on behalf of the Dublin Local Authorities. Consumer spending increased by 0.7% compared to the previous quarter and 2.3% compared to the same time last year, showing a steady growth pattern. Despite challenges like the Covid-19 pandemic, consumer spending has been on the rise for the past four years.
The main driver of growth in the capital was entertainment spending, which increased by 1.5% in the quarter, giving a much-needed boost to the hospitality sector. Additionally, discretionary sales saw a 1.2% increase, indicating growing consumer confidence in spending on non-essential items. However, spending on necessities and household goods saw minor declines of 0.1% each, the first decreases in these categories since Q3 2023.
On an annual basis, consumer spending in Dublin increased by 2.3% in Q2, reflecting a healthy economy and stable demand growth over the past year. Entertainment spending was again the primary driver of growth with a 5.2% increase year-over-year. Necessities spending also saw a 2.7% increase, possibly due to grocery price inflation over the past year. Discretionary sales had a minor 0.2% increase year-over-year, while household goods spending remained flat.
E-commerce spending continued to rise, with a 1.6% increase compared to the previous quarter and a 3.4% increase year-over-year. This growth follows a slight slowdown in late 2023.
Tourism spending in Dublin also saw growth in Q2 2024, with a 0.3% increase compared to the previous quarter and a 4.1% increase year-over-year. The increase was mainly driven by spending from US tourists, which rose by 4.5% compared to the previous quarter. Chinese and French markets also saw growth in tourism expenditure, while spending from German and UK markets saw slight declines.
Juliet Passmore, an economist at Dublin City Council, commented on the findings, noting that Dublin’s retail sector has seen 16 consecutive quarters of growth. She attributed this growth to the strength of the economy, particularly the labor market, and pointed out the significant year-over-year growth in the entertainment sector.
Overall, the data suggests a positive trend in retail and tourism spending in Dublin, indicating a resilient economy and growing consumer confidence in the city.