Retail spending in the Dublin economy continued to increase in Q2 2024, according to the latest MasterCard SpendingPulse™, produced on behalf of the four Dublin Local Authorities.
The value of retail spending amongst consumers increased by 0.7% QoQ and 2.3% YoY, maintaining the moderate growth rate recorded in the previous quarter. Spending by consumers has now risen QoQ in every quarter for four years, and has maintained an upward trajectory despite challenges including the Covid-19 pandemic.
Entertainment spend was the main driver of QoQ growth in the Capital, with an expansion of 1.5%, thus providing the hospitality sector with a fillip. This was followed by an increase in Discretionary sales (+1.2%) which may be an indication that confidence is growing and consumers are gradually spending more in ‘non-essential’ areas.
Necessities and Household Goods spending remained relatively stable in Q2, each recording minimal declines of 0.1% QoQ. While minor, these were the first such declines recorded across both categories since Q3 2023.
On an annual basis, spending amongst consumers in Dublin increased by 2.3% in Q2, reflecting the relative health of the economy and stable growth in demand over the past 12 months. Entertainment spend remained the primary driver of YoY growth with an increase of 5.2%.. Necessities expenditure also increased by 2.7% despite a weak QoQ performance. This likely reflects the cumulative impact of grocery price inflation over the past 12 months. Discretionary sales recorded a minor increase of 0.2% YoY in Q2, while Household Goods spending was flat.
eCommerce spending continued to increase in the quarter, rising by 1.6% QoQ and 3.4% YoY, following a modest lull in late 2023.
Mastercard SpendingPulse: Total Spend
US Market Drives Tourist Spending Increase in Q2
Tourism spending in the Dublin economy grew for a second consecutive quarter in Q2 2024, with expansions of 0.3% QoQ and by 4.1% YoY. This followed a tumultuous series of quarters in which spending from specific markets has wavered considerably.
Increased spending in Q2 was driven predominately by US tourists – a critical market for tourism in the Capital. Expenditure by visitors from the US increased by 4.5% QoQ, having failed to record growth across the preceding two consecutive quarters. The Chinese and French markets also recorded growth in expenditure, increasing by 2% and 0.6% QoQ respectively.
In contrast, marginal contractions in QoQ spending were recorded from both the German (-0.7%) and UK (-0.4%) markets. The latter is of greatest concern given UK visitors are vital to the Dublin economy, especially for weekend breaks.
Mastercard SpendingPulse: Dublin Tourist Spend
Q2 saw Dublin’s retail sector record its 16th consecutive quarter of growth. While inflation is an influential factor, the relative strength of the economy – and the labour market in particular – are likely drivers of these sustained expansions. This is specifically seen in the Entertainment sector where there was YoY growth of 5.2%
Juliet Passmore, Economist, Dublin City Council
