Household spending increases slightly for second month in a row

Press Releases   •   Oct 15, 2018 10:27 BST

Visa’s UK Consumer Spending Index, compiled by IHS Markit, pointed to a further increase in household spending at the end of the third quarter. That said, the +0.2% annual increase was softer than the +0.4% rise seen in August.

Overall, household spending has risen in four of the past five months. Although this marked an improvement from earlier in the year, when expenditure was persistently falling, growth remains relatively lacklustre when compared to previous years.

Channel data showed that Face-to-Face spending continued to drive the overall increase in spend, rising by +1.1% compared to a year ago. This was stronger than the +0.2% increase in this category during August. In contrast, expenditure through eCommerce categories fell during September (-0.2%), albeit at a similarly marginal pace to that seen in the previous month (-0.3%).

Adolfo Laurenti, European Principal Economist, Visa, commented:

“Although UK consumer spending only rose marginally in September, this is the fourth month out of the past five when spending has increased. Furthermore, consumption appears to be reaccelerating after a rather lukewarm performance in the summer. While his trend isn’t anything to get carried away by, overall this is a positive development, considering the softness that prevailed earlier this year.

“The good news for high street retailers is that face-to-face spending held up better than eCommerce spending in September, a solid trend that has been in place since May and that is providing some breathing room to traditional outlets. Nevertheless, UK consumers remain circumspect: Christmas is on the horizon, but so is Brexit, so we wouldn’t expect to see any significant shift in spending gears over the next few months.”

Annabel Fiddes, Principal Economist at IHS Markit, said:

“Consumer spending rose for the second month running in September, according to the latest Visa CSI data. However, the pace of increase remained marginal with spend up by just +0.2% on the year, and continued to point to relatively subdued expenditure trends overall.

“While the heatwave and sporting events boosted spend over the summer, it seems unlikely that expenditure will improve much over the final quarter of 2018 unless a number of factors improve. Firstly, uncertainty over what kind of deal the UK can secure upon its exit from the EU is weighing on consumer confidence, which remains near a post-Brexit vote low. At the same time, living costs are increasing at a faster pace and wage growth is struggling to keep up, leading to only slight gains in pay in real terms.”

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive.

Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second.

The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device. As the world moves from analogue to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.

For more information, visit (www.visaeurope.com), the Visa Vision blog (vision.visaeurope.com), and @VisaInEurope

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2018 IHS Markit Ltd. All rights reserved.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive.

Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second.

The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device. As the world moves from analogue to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.

For more information, visit (www.visaeurope.com), the Visa Vision blog (vision.visaeurope.com), and @VisaInEurope

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2018 IHS Markit Ltd. All rights reserved.

- Consumer spending: increases by +0.2%, following +0.4% rise in August - Face-to-Face expenditure: up by +1.1%, while eCommerce spend falls by -0.2% - Sector data show that Hotels, Restaurants & Bars and Food & Drink categories continue to see strongest increases in spend

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Consumer spending returns to positive territory in August

Press Releases   •   Sep 17, 2018 09:10 BST

Visa’s UK Consumer Spending Index, compiled by IHS Markit, signalled a +0.4% year-on-year increase in household spending during August. Though only slight, the rise contrasted with a -0.9% reduction in July.

Consumer spending has now increased in three of the past four months, though the latest upturn was softer than those seen in May (+0.9%) and June (+0.7%), and continued to signal relatively subdued expenditure trends in 2018 so far.

On a channel basis, expenditure increased +0.3% year-on-year across Face-to-Face categories, after a -1.2% fall in July. At the same time, spending across eCommerce channels fell slightly (-0.2%), albeit at a slightly weaker rate than that recorded in July (-0.5%).

Mark Antipof, Chief Commercial Officer at Visa, commented:

"In a welcome contrast to the prior month, August’s consumer spending was buoyed by face-to-face purchases with back-to-school spending amongst parents likely contributing to a glimmer of hope for our high streets. The prolonged good weather has seen sustained performance for hotels, restaurants and bars and food anddrink again topping the sector categories.

“Despite the increasing pressure on household budgets, bricks and mortar retailers will take encouragement that face-to-face spending rose at a faster rate than e-commerce. Since Visa’s Consumer Spending Index first launched, one of the overarching trends has been the dominance of e-commerce over face-to-face spending. This is certainly an area to watch as we move towards to big shopping events such as Halloween and Christmas.”

Annabel Fiddes, Principal Economist at IHS Markit, said:

“The latest Visa UK CSI data signalled a renewed increase in consumer spending on an annual basis in August. That said, the rate of growth was only slight and underscored the fragility of expenditure trends since early 2017.

“As the positive effects of the summer heatwave and summer sporting events have faded away, it seems unlikely that spending trends will improve much given the challenging conditions households face. Notably, wages are struggling to rise as quickly as living costs, while the recent rate hike by the Bank of England likely adds strain on households budgets. At the same time, consumer confidence remains stuck near its post-Brexit vote low, as concerns continue to mount over what kind of Brexit deal the UK can achieve when leaving the EU.”

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive.

Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second.

The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device. As the world moves from analogue to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.

For more information, visit (www.visaeurope.com), the Visa Vision blog (vision.visaeurope.com), and @VisaInEurope

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2018 IHS Markit Ltd. All rights reserved.

- Consumer spending: rises +0.4%, after -0.9% decline in July - Face-to-Face spend: increases +0.3%, but eCommerce expenditure declines by -0.2% - Hotels, Restaurants & Bars and Food & Drink categories see the biggest increases in expenditure

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Household spending falls slightly in July

Press Releases   •   Aug 13, 2018 09:12 BST

Visa’s UK Consumer Spending Index, compiled by IHS Markit, pointed to a renewed fall in consumer spending at the start of the third quarter. Although the reduction was only slight (-0.9% on the year), this compared to increases in expenditure in the prior two months.

Channel data signalled that the decrease in total spend was broad-based with both eCommerce and Face-to-Face categories noting lower expenditure on an annual basis for the first time since April.

The quickest fall in spend was registered in Face-to-Face categories (-1.2% year-on-year). This followed a slight increase during June (+1.1%). However, the pace of reduction remained weaker than those seen earlier in 2018. Meanwhile, eCommerce expenditure fell by -0.5% on the year, after a marginal rise during June (+0.4%).

Mark Antipof, Chief Commercial Officer at Visa, commented: 

“Food and drink, followed by hotels, bars and restaurants, saw the highest spending increases of all categories in July, which the warm weather and football clearly contributed to. However, retailers of household goods and those operating within recreation and culture noted significant declines, an indication that household budgets are stretched.”

“Retailers had a difficult time in early 2018, and while there was some respite in May and June, July’s fall in spending is concerning, particularly as we look ahead when the impact of the interest rate rise and back-to-school costs will likely put further pressure on Britons’ wallets.”

Annabel Fiddes, Principal Economist at IHS Markit, said: 

“The Visa UK CSI pointed to a renewed fall in household spending during July, as it seems the warm weather and World Cup failed to help lift spending for the third month in a row. However, the rate of reduction (-0.9% year-on-year) was not as strong than those seen earlier in the year. “

“Expenditure trends have been relatively subdued in 2018 so far, which can be linked in part to disappointing growth in real earnings despite a tight labour market, while the recent interest rate hike by the Bank of England is likely to add further pressure on households’ budgets. Combined with anxieties around the ongoing Brexit negotiations and lower consumer confidence, it seems unlikely that expenditure trends will improve in the near-term.”

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. 

Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second.

The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device. As the world moves from analogue to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.

For more information, visit (www.visaeurope.com), the Visa Vision blog (vision.visaeurope.com), and @VisaInEurope

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2018 IHS Markit Ltd. All rights reserved.

- Consumer spending: down -0.9% compared to July last year - Face-to-Face spend: decreases -1.2%, while eCommerce expenditure falls by -0.5% - Warmer weather supports solid increase in spend across Food & Drink and Hotels, Restaurants & Bars categories

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‘Alight here for Gareth Southgate’ – iconic Tube station renamed in celebration of England football team

Press Releases   •   Jul 16, 2018 09:26 BST

• Transport for London (TfL) and Visa proudly welcome home England manager Gareth Southgate and his team by renaming Southgate Tube station to honour the team’s achievement this summer; • Iconic London Underground station changed from ‘Southgate’ to ‘Gareth Southgate’ for 48 hours; • Commuters and football fans encouraged to share photos and videos using hashtag #SouthgateSelfie.

Weather and World Cup prompt first back-to-back jump in household spending in over a year

Press Releases   •   Jul 16, 2018 01:01 BST

Headline Findings: • Consumer spending: Increases +0.7% compared to a year ago • Face-to-Face spend: Outstrips eCommerce for second consecutive month • World Cup fever: Hotels, Restaurants & Bars and Food & Drink categories are best performing sectors

Consumer spending bounces back in May

Press Releases   •   Jun 18, 2018 00:01 BST

Headline findings: - Consumer spending: up +0.9% year-on-year, quickest increase since March 2017 - Face-to-Face spend: up +1.5% on the year, strongest upturn since October 2016 - Spending on household goods rises for the first time in 18 months

Consumer spending falls further amid weak high street performance

Press Releases   •   May 14, 2018 00:01 BST

Mark Antipof, Chief Commercial Officer at Visa, commented:

“With inflation beginning to fall and wages growing faster than expected in recent months, it would have been easy to assume we might be over the worst of the consumer squeeze. Yet there has been no corresponding improvement in spending, with April’s 2% decline a simple repeat of what we witnessed in March.

“Low confidence levels amongst shoppers and the gloomy outlook for the UK economy are likely to have contributed to this continued caution. It is clear that consumers remain in belt-tightening mode, with discretionary spending on furniture, electrical appliances and recreational activities worst hit.

“Retailers will be pinning their hopes on further improvements in household finances and warmer weather leading to a more upbeat few months heading into summer.” 

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere.

As the world moves from analogue to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.

For more information, visit (www.visaeurope.com), the Visa Vision blog

(vision.visaeurope.com), and @VisaNewsEurope

Headline findings: - Consumer spending: drops -2.0% year-on-year, matching the decline seen in March - Face-to-face spend: down -5.4% on the year, quickest fall for six years - Household Goods and Recreation & Culture are weakest performing sectors

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Consumer spending decline continues as March rounds off worst quarter in over five years

Press Releases   •   Apr 16, 2018 00:01 BST

Mark Antipof, Chief Commercial Officer at Visa, commented:

“The negative impact that the ‘Beast from the East’ had on UK economic activity last month has been widely reported, but this doesn’t entirely explain March’s lacklustre consumer spending. We are in the midst of a dip in consumer confidence and this – coupled with other economic factors – is causing shoppers to continue to restrain themselves.

"High street sales suffered once again, however it is also noteworthy that e-commerce spend fell for the first time in 10 months, and by its fastest rate since 2012. That said, it is too early to read a great deal into this year-on-year decline, which should be viewed in the context of high growth rates in early 2017.”

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere.

As the world moves from analogue to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.

For more information, visit (www.visaeurope.com), the Visa Vision blog

(vision.visaeurope.com), and @VisaNewsEurope

Headline findings: - Consumer spending: declines -2.1% year-on-year, following -1.0% drop in February - Face-to-Face spend: -3.0% on the year, while eCommerce falls by -1.2% - Transport & Communication weakest performing sector

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Visa UK CSI - Consumer spending has weakest start to the year since 2012

Press Releases   •   Mar 12, 2018 00:01 GMT

Mark Antipof, Chief Commercial Officer at Visa, commented:

“Britons have been in belt-tightening mode since last summer. February’s cold snap certainly didn’t alleviate this situation, particularly when we shine a spotlight on high street spending, and recreation and culture in particular, which saw its biggest decline since April 2010.

“On the other hand, hotels, restaurants and bars experienced another strong month. The resilience of this sector is somewhat unique, having reported uninterrupted growth since February 2011.

“As we look ahead into March, consumer spending is at risk of posting one of the worst Q1 results on record. Retailers will no doubt be hoping that the milder weather will put a spring in shoppers’ steps.”

Annabel Fiddes, Principal Economist at IHS Markit, said:

“The latest Visa UK CSI data pointed to a further modest reduction in consumer spending in February, with expenditure down -1.1% compared to a year ago. The High Street remained a key source of weakness, seeing spend fall for the tenth month in a row, while growth in eCommerce spending continued to disappoint.

“Rising living costs, lacklustre wage growth and relatively subdued consumer confidence are all likely playing a part in the ongoing reduction in household spending. Unless the squeeze on incomes subsides, it looks unlikely that household spending will pick up anytime soon.”

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive.

Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second.

The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere.

As the world moves from analogue to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.

For more information, visit (www.visaeurope.com), the Visa Vision blog (vision.visaeurope.com), and @VisaNewsEurope

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and expertise to forge solutions for the major industries and markets that drive economies worldwide.

The company delivers next generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions.

Headquartered in London, IHS Markit is committed to sustainable, profitable growth. IHS Markit is a registered trademark of IHS Markit Ltd. All other company and product names may be trademarks of their respective owners © 2018 IHS Markit Ltd. All rights reserved. e-mail: economics@ihsmarkit.com

Headline findings: Consumer spending: falls -1.1% year-on-year, declining for ninth time in ten months Face-to-Face spend: -2.5% on the year, while eCommerce rises only slightly (+0.2%) Recreation & Culture sees its greatest decline since April 2010

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Planes, Trains and Automobiles – Visa Launches Program to Give Consumers a Better Travel Experience

Press Releases   •   Feb 22, 2018 13:05 GMT

Visa launches Transportation Center of Excellence to reimagine payments for all parts of the journey – from parking and refuelling to travel by air and rail

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About Visa UK

About Visa Europe

Visa Europe is a payments technology business owned and operated by member banks and other payment service providers from 38 countries.

Visa Europe is at the heart of the payments ecosystem providing the services and infrastructure to enable millions of European consumers, businesses and governments to make electronic payments. Its members are responsible for issuing cards, signing up retailers and deciding cardholder and retailer fees. Visa Europe is also the largest transaction processor in Europe, responsible for processing more than 18 billion transactions annually.

There are more than 500m Visa cards in Europe, while €1 in every €6 spent in Europe is on a Visa card. Total expenditure on Visa cards exceeds €2 trillion annually, with €1.5 trillion spent at point-of-sale.

Visa Europe is an independent business with an exclusive, irrevocable and perpetual licence to use the Visa brand in Europe. Visa Europe works in partnership with Visa Inc. to enable global Visa payments in more than 200 countries and territories.

For more information, visit www.visaeurope.com and @VisaEuropeNews