Like the U.S. consumer U.K. spending is heating up +2.1% on an annual basis, up from a +1.9% rise in September, and the strongest annual rate of growth for three months. Spending also rose slightly on the quarterly and monthly spending measures in October.
The latest Visa Europe: UK Expenditure Index data show data the majority of spending categories saw greater expenditure in October, with Hotels, Bars & Restaurants (+10.0%) and Recreation & Culture (+5.3%) categories seeing the sharpest increases in spending. Clothing & Footwear (+3.7%) and Household Goods (+3.7%) retailers also saw marked growth in expenditure, while spending rose at a solid clip in Food & Drink categories (+2.1%).
The only two sectors to see reduced spending were Heath & Education and Transport & Communication, though the rate of decline was marginal in both cases.
Expenditure growth was supported by higher spending in both face-to-face (+1.0%) and e-commerce (+4.3%) categories in October. Though only slight, it was the first time that spending on the high street had increased for two months.
Six out of the eight broad spending categories saw increased consumer spending during October. Growth was led by Hotels, Restaurants & Bars, while expenditure also rose markedly in Recreation & Culture. Solid expansions were also reported in Clothing & Footwear, Household Goods and Food & Drink categories. Meanwhile, Misc. Goods & Services (which includes hairdressing and jewellery) continued to see modest spending growth.
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