Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Consumer spending falls further in December

Consumer spending dropped by 1% in December 2018, with the high street taking a particuarly heavy blow in the run up to Christmas, new figures have shown.  

The fall marks the strongest hit seen since April last year, having accelerated from a 0.7% decline in November 2018, according to Visa’s UK Consumer Spending Index. 

The low expenditure was largely driven by a disappointing performance by the high street as in store sales fell 1.6% on an annual basis in December.

Online spend had edged up by 0.5% year on year.

Commenting on the figures, Adolfo Laurenti, European principal economist for Visa, said: “The further decline in UK consumer spending in December 2018 is a disappointment, but not a surprise. Notwithstanding a backdrop of low unemployment and rising wages, households remained very cautious at the end of the year - as they were for most of 2018.

“An acceleration in spending at hotels, restaurants and bars (+7.6% year-on-year) suggests that some categories of discretionary spending are holding up better than the market as a whole. And the modest pick-up in ecommerce point to the resilience of digital channels of distribution, a favorable long-term trend that recent woes have not derailed.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.