Consumer spending growth edges up to three-month high in October

Headline findings:

  • Consumer spending increases at fastest annual rate in three months (+2.1%)
  • Majority of spending categories see increased expenditure, led by Hotels, Bars & Restaurants and Recreation & Culture (+10% and 5.3% respectively)
  • Renewed increase in spending on the high street as online expenditure continues to rise solidly

Kevin Jenkins, Managing Director UK & Ireland at Visa Europe said:

“Overall spending reached a three-month high in October, as a mix of rising wages, improving job prospects and near-zero inflation gave households more money to spend and boosted the buying power of their pounds.

“The warm autumn weather and the school half-term break coinciding with Halloween meant people were spending more money on going away, eating out, and entertaining. The same factors might have brought more shoppers on to the high street too; with bricks-and-mortar experiencing an encouraging revival.

“Looking forward, overall spending looks set to reach higher level this month, as both online and store based retailers are preparing to lure customers in with bigger and better Black Friday deals. It remains to be seen though whether this will come at the expense of trading later in the festive period.”

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