2017 turning to be worst year for expenditure since 2012
According to a new research, household spending in the UK fell by 0.9 per cent year-on-year in November and this trend is unlikely to improve in the near future. In October, the spending was down by 2.1 per cent.
The data, released today by credit card company Visa, says that british consumers reined in Christmas travel plans and bought fewer new cars last month.
However, cheaper luxuries such as beauty treatments and cosmetics saw gains. People opt for smaller treats, at the same time tightening their belts when it comes to larger purchases,” Visa executive Mark Antipof said.
Black Friday discounts in late November boosted online sales at the expense of physical stores, Visa added.
Visa said inflation-adjusted consumer spending last month was 0.9 per cent lower than in 2016. This was a smaller decline than October’s 2.1 percent drop but still enough to make annual falls in spending likely for the first time since 2012 for both the Christmas season and 2017 overall, the company said.
The British Chambers of Commerce also stated today that it expected this trend to persist throughout next year. “Continued uncertainty over Brexit and the burden of upfront cost pressures facing businesses is likely to stifle business investment, while falling real wage growth is expected to continue to weigh on consumer spending,” BCC economist Suren Thiru said.