UK household spending is going gangbusters with a +1.9% year-on-year (YOY) increase in spending in August. It was the strongest increase in Recreation & Culture spending in six years. Misc. Goods & Services (which includes hairdressing and jewelry) also reported strong growth (+12.1%).
According to Visa Europe’s UK Expenditure Index spending rose in five of the eight broad categories in August, with Hotels, Restaurants & Bars (+8.9% year-on-year), and Recreation & Culture (which includes cinemas and theme parks) (+6.1%) both recording marked increases in expenditure.
Spending continued to increase in the Food & Drink (+2.3%) and Household Goods (+1.4%) categories. Meanwhile, Clothing & Footwear retailers recorded a further fall in spending volumes in August (-1.8%).
Expenditure growth was led by Online retailers in August, where growth hit a four-year high (+10.7% on the year), while spending on the High Street rose modestly (+1.4%).
All three spending channels registered increased household expenditure in August, with growth led by Online retailers.
Spending in Online categories rose markedly in August (+10.7% year-on-year), following strong growth in July (+6.3%). Furthermore, it was the quickest rate of increase seen in this category for four years.
Expenditure on the high street also rose in August, with Face-to-Face categories noting a +1.4% annual increase in spending volumes.
Mail/Telephone Order categories meanwhile saw a modest rate of spending growth (+0.5% on the year), that was slower than that seen in the previous month (+1.3%).
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