You are here: Home - Household Bills - News -

Spending falls for first time since 2013

Written by:
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.”

Related Posts

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.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week