Consumer spending bounces back after pre-EU vote lull
Spending by consumers increased by 2.4% year-on-year in September as people splashed out on meals and trips out to enjoy the last of the summer sun - while economic concerns “took something of a back seat” - according to Visa.
This followed a small 0.1% annual rise in consumer spending recorded in August, which had marked the weakest growth seen in nearly three years.
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Hide AdVisa UK’s Consumer Spending Index said September’s bounce back in spending “signals that expenditure growth is seeing tentative signs of recovery”.
The 2.4% annual growth rate in spending was the highest seen in the past five months.
Online spending in particular was driving the growth seen in September, with growth in spending “face-to-face” on the high street remaining broadly flat, the report said.
E-commerce spending increased by 6% annually in September, while spending on the high street edged up by just 0.1%.
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Hide AdThe index, compiled by IHS Markit, reflects overall consumer spending, not just that on cards.
It found spending on recreation and culture was up by 6.8% year-on-year in September, while spending in hotels, restaurants and bars increased by 6%.