You are here: Home - Household Bills - News -

Spending falls for first time since 2013

0
Written by:
12/06/2017
Consumer spending fell for the first time in nearly four years in May as shoppers started to feel the squeeze of rising prices and stalling wage growth.

Overall spending was down 0.8% on the year last month, the first recorded fall since September 2013, according to Visa.

Spending on transport and communication fell by 7.9% annually, while spending on clothing and footwear was down by 5.2%.

Household goods saw the quickest drop in spend since March 2013, down 4.1%.

Food and drink retailers saw a marginal decline of 0.6% in May.

In contrast, spending on hotels, restaurants and bars was up 3.3%, while miscellaneous goods and services including hairdressers and jewellery was up 7.1%.

‘Bricks and mortar’ retailers had a particularly challenging month, with spending down 5.3%. But online retailers posted a 6.9% rise in spend.

Annabel Fiddes, economist at IHS Markit, which compiled the data for Visa, said: “The outlook for consumer spending continues to look relatively bleak, with households facing faster increases in living costs and muted wage growth.

“The squeeze on household finances is likely to get worse as the Bank of England forecasts faster increases in consumer prices in the coming months.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Bandage
Holidaymakers overestimate benefits of EHIC cards

Holidaymakers are being reminded not to use the European Health Insurance Card (EHIC) as a substitute for travel insurance as...

Close