The Covid-19 outbreak has brought about drastic changes to the day-to-day life in Ireland’s households- from healthcare, to work, and how we are spending our money. Having an in depth understanding of how the virus has impacted our wallets, personal expenditure, and economic activity is crucial in maintaining financial stability.
Carbon Tax increase kicks in today
Households face increases in their energy bills, as the hike in the carbon tax kicks in. Daragh Cassidy, Head of Communications at bonkers.ie, says that with people being laid off following the Covid-19 crisis, the government tax increase has come at the worst time possible.
Savings levels hit highest level since last economic crash
Household savings have hit their highest level since the last financial crisis. People spent less in the first three months of the year, which meant that they put more money aside, leading to a rise in income despite the disruption to employment caused by the pandemic.
Consumer sentiment improves for second month after Covid-19 collapse
Consumer sentiment improved in June for the second month in a row, but remains well below levels recorded before the onset of the Covid-19 crisis. The recovery in consumer sentiment suggests the easing of lockdown measures is making consumers feel slightly less negative about the economic outlook. Austin Hughes, chief economist at KBC Bank, believes there is a significant improvement in expectations for household finances a year from now.
Transport and accommodation spending see biggest ever drops
New figures from the Central Bank show that the total value of card transactions (including ATM transactions) decreased by 35% in April – the biggest annual decline recorded since the series began. Expenditure on transport and accommodation slumped by 87% and 91% respectively in April – the largest contractions ever recorded for these sub-sectors – amid the lockdown.
Retail bounced back in June as shoppers rushed out after lockdown
Customers rushing back into shops as the lockdown eased in June lifted the value of retail sales back to pre-Coronavirus levels. Central Bank figures earlier this month had pointed the way to a potential recovery in consumer demand – with household savings deposits of €10.5bn in May far exceeding withdrawals, and much of that cash sitting in current accounts.
For more information on the pandemic and household expenditure, visit the Mark Kennedy & Co news page.