Consumer spending bounces back after pre-EU vote lull

The rise in the amount of spending is the highest in the past five months
The rise in the amount of spending is the highest in the past five months

Households’ spending showed “renewed signs of life” in September after hitting a soft patch during the run-up to the Brexit vote, a report has found.

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.

Visa 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%.

The 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%.