Rising Prices Slows Consumer Spending Growth In UK: Report

April 18, 2023 4:15 am2 commentsViews: 116

United Kingdom’s consumer spending growth rate declined in the first quarter of 2017 for the first time since the last quarter of 2013, reveals Visa’s UK Consumer Spending Index.

The blame for the slow growth in spending is hovered on rising prices that is gripping tight people’s finances.

The index reveals spending rose by 0.9 percent annually in the first quarter of the year, leading to the weakest quarter performance since 2013-end.

The worst drop was in the month of March when the annual growth in spending dropped back to 1 percent from 1.3 percent annual increase a month ago.

UK and Ireland managing director at Visa, Kevin Jenkins, said this is the starting point of slowdown of consumer spending following strong levels seen in late last year and this is due to the rising prices that is squeezing household purchasing power.

Jenkins added, “While overall 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.”

The index also reveals rise in spending has been seen in bars, restaurants, beauty, health, jewellery and online shopping.


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