Consumer Spending Reaches Six Month High As Christmas Countdown Begins

The growth was mainly led by the strong performance of the service (+9.0%) and recreation and culture sectors (+7.4%)

Consumer Spending Reaches Six Month High As Christmas Countdown Begins

UK consumer spending growth reached a six month high in October as retailers ready themselves for the festive season.

According to Visa’s UK Consumer Spending Index, shoppers’ spending rose by +2.5% last month, up from +2.3% in September – signalling the strongest rate of increase in half a year.

The boost in trade was mainly fuelled by the strong performance of the service (+9.0%) and recreation and culture sectors (+7.4%), with spending on clothing and footwear rising at its quickest rate since September 2015 (+4.7%).

Consumers buying their products online increased solidly (+4.3%), while in-store purchasing expanded for the first time in three months (+1.8%) – a sign that retailers better get ready for the Christmas rush.

Kevin Jenkins, UK and Ireland managing director at Visa, said:

“Consumer spending growth rose to a six month high in October. Talk of potential price rises does not appear to have dented consumers’ confidence, with spending up 2.5% on the year, on a par with pre-referendum levels.

“As we get closer to the all-important Christmas trading season, it will be interesting to see whether the strong momentum in October continues into Black Friday and beyond.”

Expecting increased footfall in the coming weeks? Here’s how to meet the consumer need for speed.

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