UK: Consumer spending falls for the first time since 2013

According to Visa, annual consumer spending in the UK fell in May, the first decline in year-on-year spending since September 2013, dropping by 0.8% compared to the same month a year ago, after adjusting for inflation.

Visa put this fall down to rising prices and slow wage growth which is putting pressure on consumers. Confidence is also expected to stay low, with the recent election showing that there is a lot of political uncertainty in the UK. This trend can also be seen in RFi Group’s UK Priority & Retail Banking Council data, which shows spending over the next 12 months is likely to fall, with 26% of retail banking customers looking to spend less in H1 2017, compared to 20% during the same period a year ago.

Spending over the next 12 months is likely to fall, with 26% of retail banking customers looking to spend less in H1 2017, compared to 20% during the same period a year ago.

Transport and clothing retailers experienced the biggest falls in spending, while spending on hotels and restaurants increased annually but at a slower rate than in the past, at 3.3%.

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