Household spending growth has slowed to the lowest since 2013-end and price rise is to be blamed, reveals Visa’s UK Consumer Spending Index.
During the period of January to March this year the annual spending rose by 0.9 percent. This is reported as the weakest quarterly performance since the last quarter of 2013.
In the month of March the spending dropped to 1 percent. In the month of February the increase was 1.3 percent annual.
According to UK and Ireland managing director at Visa, Kevin Jenkins, the latest index suggest spending has started to show a slower growth due to rise in prices that has resulted with squeeze in household purchasing power.
In late 2016 the consumer spending was at strong level.
Jenkins said, “While overall spend continued to expand in March, the average growth rate for quarter one slowed down sharply to 0.9% from 2.7% in quarter four 2016. Quarter one was in fact the weakest quarter in terms of growth in the past three years.”
He further added there were certain pockets where spending growth was seen in March like in recreation and culture that rose by 7.2 percent annually.
Jenkins continued the spending on bars and restaurants grew by 4 percent, and similarly same trend was seen on miscellaneous goods services like beauty, health and jewellery where the jump was by 6.9 percent.
However, decline was seen in the spending on traditional retail sectors.
The index reveals further spending on online products increased by 8.2 percent annually in March and decline by 1.3 percent annually in the same month was seen in face-to-face spending on the high street.