UK Consumer Spending Falls 2% Amid Weak High Street Performance
Visa has announced that consumer spending in the UK has fallen further in April as weak performances on the high street continue.
Consumer spending fell by 2% year-on-year in April, which also matched the decline seen in March. Visa added that face-to-face spending fell by 5.4%, the sharpest fall seen in six years.
Mark Antipof, Chief Commercial Officer at Visa, said, “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."
Antipof said that 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,” Antipof added, “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.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.