The value of retail spending amongst consumers in Dublin continued on an upward trajectory for a ninth consecutive quarter in Q2 2023.
The latest MasterCard SpendingPulse™, produced on behalf of the four Dublin Local Authorities, reached a new index peak of 150.3 in the quarter as growth rates of 1.1% QoQ and 4.7% YoY (SA) were recorded. Inflation, which remains at high levels, was a likely contributor, along with strong domestic demand.
Entertainment spending was central to the overall QoQ growth in Q2. An expansion in this category of 4.7% QoQ is reflective of the robust performance of hotels, bars and restaurants since early 2022 – especially as international tourism has been rejuvenated post-pandemic. Growth also accelerated in discretionary and household goods sales in the quarter, with respective QoQ expansions of 1.5% and 1.4%. Necessities spending remained on an upward path but the rate of growth slowed relative to Q1 – potentially related to the increased Entertainment expenditure in the quarter.
Expenditure via eCommerce platforms recorded QoQ growth (+2.1%) in the quarter as consumer spending growth remained split between online and bricks-and-mortar retail outlets. This is an acceleration compared to Q1, and was the strongest rate of expansion in over a year.
On a YoY basis, Dublin retail spending growth of 4.7% was broadly aligned with the national inflation rate across the quarter, underlining the effects of rising prices. While all categories expanded YoY in the Capital, Entertainment was critical rising by more than a fifth (+20.7%). The value of Necessities expenditure, which has been subject to upward pressure from rising grocery prices, expanded by 8.2% YoY – though the emergence of so-called ‘supermarket wars’ may dampen such growth in the forthcoming quarters.
Mastercard SpendingPulse: Total Spend
Mixed Results for Dublin Tourist Spending
The Dublin tourism market produced mixed retail spending results in Q2 which may be of concern for the Capital’s ongoing competitiveness and attractiveness. Overall spending grew by 3.1% QoQ in the spring and early summer periods. This was primarily influenced by the US market. An expansion of 7.6% QoQ amongst visitors from this crucial market was encouraging and bodes well ahead of the busy summer/Q3 season. The UK and German markets were concerning though, with respective QoQ reductions in spending of 15.9% and 4.2%. Expansions in spending of 0.7% QoQ and 35.4% QoQ from the French and Chinese markets respectively are positive and will have contributed to overall spending growth in Dublin in Q2.
Mastercard SpendingPulse: Dublin Tourist Spend
“In Q2 2023, tourism spending continued to power retail sales results for both Dublin as well as across Ireland. Building on the large rebound in 2022, overall tourism spending in Q2 2023 was up 14% in Dublin and over 18% across Ireland. In Dublin, the growth rate compared to Q2 2022 was driven by spending by American tourists. For the country overall, spending on entertainment was up considerably compared to Q2 2022, while spending on necessities was also up over 9% for the second consecutive quarter. For the first half of the year, spending growth rates have been impressive and show the resilience of the Irish economy.”
Michael McNamara, Global Head of SpendingPulse, MasterCard
SpendingPulse™ is provided by MasterCard Advisors and produced in conjunction with Grant Thornton on behalf of the four Dublin Local Authorities to report on national and Dublin retail sales performance. Data is seasonally adjusted but is not adjusted for inflation. MasterCard SpendingPulse™ does not represent MasterCard financial performance.
