Cash withdrawals up 8.1% on November
Consumers continue to withdraw cash at a growing rate in the run up to Christmas, according to the latest figures released by UK ATM network, LINK.
The new data covers daily cash withdrawals for the period up to 18 December 2007 from more than 64,000 LINK cash machines in the UK and points to a good spending outcome for retailers.
The figures compare the percentage growth in average daily cash withdrawals from November to December in 2006 and 2007, as well as comparing the increase in the total value of withdrawals in December 2006 and December 2007, for the first 18 days of the month.
So far this December, average daily cash withdrawals are up by 8.1% on November, while in the same period last year, the increase from November to December was 7.8%.
In 2006, £5.631bn was withdrawn from LINK cash machines up to 18 December. In December 2007 so far, the withdrawals have reached £5.782bn.
Richard Snook, economist at the Centre for Economics and Business Research, said: “The figures show that consumers are not letting concerns over the credit crunch and the housing market affect their Christmas spending. The £5.8 billion of cash that has been withdrawn from LINK cash machines so far this month, has put December on course to post the highest ever withdrawals total.
“The December interest rate cut and growing likelihood of further cuts next year is giving consumers the confidence to continue spending. The Bank of England is now showing its willingness to counter the affects of the credit crunch on mortgage and credit card rates. This will help to prevent steep increases in the cost of credit, which many have been predicted since the onset of the financial crisis in July.”