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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

  • Are you planning to make a last-minute investment into your ISA or SIPP during this tax year? Here are five tips to… https://t.co/lGjHix7F7y
  • Forget a delay, more than a third of private investors favour a no-deal Brexit - https://t.co/SW9dXjCK2C #Brexit
  • Have you ever tried to save money but unintentionally ended up spending more in the process? Here's how to avoid th… https://t.co/ORmTNOVmV3

Read previous post:
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