Consumer spending falls further in December

Press Releases   •   Jan 16, 2019 09:12 GMT

Headline Findings: • Consumer spending: down -1.0%, strongest decline since April 2018 • Face-to-Face expenditure falls -1.6%, eCommerce spending up just +0.5% • Transport & Communication sees fastest drop in spend (-4.4%), while Hotels, Restaurants & Bars buck the trend (+7.6%)

Household spending falls for second month running in November

Press Releases   •   Dec 17, 2018 00:05 GMT

Headline Findings: • Consumer spending declines by -0.7%, following -0.2% fall in October • eCommerce expenditure rises by just +0.4%, while Face-to-Face spend falls again (-0.9%) • Transport & Communication, Clothing & Footwear and Recreation & Culture see quickest drops in spend

CRICKHOWELL HIGH STREET CROWNED ‘UK’S BEST’ IN GREAT BRITISH HIGH STREET AWARDS

Press Releases   •   Nov 15, 2018 16:13 GMT

• Crickhowell High Street has been crowned the overall winner of the Government-run Great British High Street Awards 2018, sponsored by Visa • The Welsh high street, commended for its community-led initiatives and strong network of independent businesses, wins £15,000 for the local community

UK consumer spending falls slightly in October

Press Releases   •   Nov 13, 2018 00:10 GMT

Headline Findings: • Consumer spending: falls by -0.2%, after rising in August and September • eCommerce expenditure up by +2.6%, but Face-to-Face spend declines by -2.0% • Spending falls across Clothing & Footwear, and rises only slightly across Food & Drink and Hotels, Restaurants & Bars categories

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

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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