UK consumer spending growth trends continue to validate household spending is in its strongest of times since 2010. February Expenditure was up by +1.2% year-on-year, following a similar increase in January (+1.4% on the year).
According to the latest Visa Europe UK Expenditure Index, UK consumer spending increased across all three monitored channels in February, with Mail/Telephone Order categories noting the strongest rate of growth.
Online expenditure increased in February (+0.8% year- on-year), following a marginal reduction at the start of the year (-0.2%). Furthermore, it was the first time that Online spending had increased on an annual basis since last September.
Meanwhile, Face-to-Face spending rose for the second successive month in February, with the rate of expansion little-changed from January (+1.5% on the year).
Mail/Telephone Order categories also saw a solid increase in expenditure during February (+3.1%), thereby extending its current sequence of growth to three months.
Visa Europe’s UK Expenditure Index takes card spending data and adjusts it for a variety of factors to create a like-for-like comparison of consumer spending. This distinguishes the Index from Visa’s corporate performance, and thereby provides a robust indicator of consumer spending habits.
Visa Europe’s latest data also indicated that spending rose in five of the eight broad categories in February. The strongest rate of growth continued to be recorded by Hotels, Restaurants & Bars. Household Goods and Food, Beverages & Tobacco also saw solid expenditure growth in February, while spending volumes rose slightly in Recreation & Culture and Transport & Communication categories.
At the other end of the table, Misc. Goods & Services (which includes hairdressing and jewelry) reported the sharpest reduction in expenditure, while Clothing & Footwear and Health & Education also noted marked reductions in spending.
Visa Europe noted High Street spending rose solidly for the second month running (+1.5% year-on-year), and continued to outpace Online expenditure growth (+0.8% on an annual basis).
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