MNI POLICY: Ireland April Consumption Falls By EUR2.6 billion

By Luke Heighton

     FRANKFURT (MNI) - Irish card spending and cash withdrawals this month could

be 40% lower than in April 2019 as a result of the coronavirus pandemic, a study

by the Central Bank of Ireland has claimed, equivalent to a EUR2.6 billion drop

in transactions.

     Spending on credit and debit cards initially increased by 22% -

representing an additional EUR42 million spending by Irish consumers - after the

Irish government announced the first set of containment measures on 12 March,

the study reported, before falling in the second half of the month. ATM

withdrawals, however, were down 10% by the end of same week

     By the end of the month, retail card spending (point of sale and credit

card) had fallen by 27% compared with the first week of March, while cash

withdrawal amounts had almost halved. Total card transactions (including ATM

usage) for March 2020 were valued at EUR5.4 billion - a 9% drop compared with

March 2019.

     ECB, Reserve Bank of Australia, Federal Reserve and Bank of Italy studies

have previously indicated the value of high-frequency retail transactions data

as early indicators of household consumption and economic activity, the report

noted.

     Only cards issued by the largest Irish issuers of credit/debit cards to

individuals and businesses were included in the study. However these represented

98% of card transactions, the study's authors wrote.

     "If the current level of spending and ATM withdrawals were to continue for

the remainder of April 2020, it is estimated that overall card spending and cash

withdrawals would be EUR2.6 billion (or 40%) lower than in comparison with April

2019," they concluded.

--MNI Frankfurt Bureau; +49-69-720-146; email: luke.heighton@marketnews.com

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com