Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
Piggy bank tape measure
November 13 2017

Consumer spending falls at fastest rate in four years

Emily Perryman News, Personal Finance News Annabel Fiddes, consumer spending, IHS Markit, inflation, VISA

CONSUMER spending has fallen at its fastest rate in four years, displaying further evidence of the ongoing squeeze on household budgets.

IHS Markit and Visa’s UK consumer spending index revealed a two per cent year-on-year decline in spending during October.

This is the quickest rate of decline since September 2013, and it means 2017 as a whole is on track for its worst performance since 2012.

It is the fifth time in six months that the survey has registered a drop in consumer spending.

The report said trends have worsened in recent months as household budgets are being squeezed by stagnant wage growth and strong increases in the cost of living.

In addition, slower economic growth and Brexit uncertainty continue to weigh on consumer confidence.

“Furthermore, the recent move by the Bank of England to increase its benchmark interest rate could also weigh on household spending going forward,” the report added.

Read more: Inflation hitting higher income households hardest

Clothing retailers were the worst hit, suffering a nine per cent decline in spending – the biggest fall since the series began in mid-2009.

Annabel Fiddes, principal economist at IHS Markit, said: “The data add to evidence that falling real wages, muted consumer confidence and lingering uncertainties over the direction of the UK economy are having a substantial impact on spending.”

Last month, figures from the Office for National Statistics revealed households in Britain saw their spending power fall for the fourth consecutive quarter – the longest period of decline for almost six years.

Consumers also reported a worsening in their perception of their own financial situation.

Read more: Savings crisis ‘looming on the horizon’

Most UK tech founders expect to sell for £50m or less Ranger Direct expects further write-downs in Argon dispute

Related Posts

Anti-Flu Masks. Date: 1920s

News, Property, Top 3

Brickowner chief predicts 1920s-style property boom

Reduce greenhouse gas emission for climate change and sustainabl

Industry News, News, Top 3

Investors and regulators urged to focus on green credentials

Close-up Of Person Hand Giving Money To Other Hand

Global News, Industry News, News, Top 3

Funding Circle to offer first and second draw PPP loans

Popular posts:

  • MP queries level of fraud in P2P lending
  • RateSetter to stop receiving IFISA transfers
  • Landbay chief: I don’t regret leaving P2P
  • P2P lenders sweep industry awards nominations
  • Some firms set to pay more than maximum CBILS interest rate
  • Growth Street to return 100pc of investor funds
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by