UK household spending remains robust with a +1.8% year-on-year (YOY) increase in spending in September.Though solid, the pace of increase was slower than the average annual increase in 2015 so far of +2.4%.
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%).
Growth was partly driven by increased spending in Recreation & Culture (+7.8% year-on-year) and Clothing & Footwear (+6.2%), where both categories saw the strongest increases in expenditure since last August. Hotels, Restaurants & Bars also saw a marked rise in spending (+6.6%), while expenditure rose solidly in Households Goods (+4.1%) and slightly in Food & Drink categories (+0.5%).
The only sectors to record a fall in expenditure in September were Transport & Communication and Health & Education.
As has been the case for much of the past two years, e-commerce retailers continued to see a marked rise in spending in September (+5.8%). In contrast, spending fell slightly in face-to-face categories (-0.1%), after a marginal increase in August (+0.3%).
Channel data indicated that increased overall expenditure was largely driven by greater spending in e-commerce categories, as face-to-face channels registered a slight drop in spending volumes during September. Furthermore, expenditure growth has remained much stronger through e-commerce channels that on the high street for much of the past two years.
Growth in e-commerce spending remained sharp in September (+5.8% on the year), with the rate of expansion accelerating slightly since August (+5.3%).
Spending on the high street meanwhile fell fractionally in September (-0.1% year-on-year), following a slight increase in August (+0.3%).
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