MNI DATA: Consumer's 2018 Spending Seen Worst Since 2012: VISA

--April VISA Overall Spending -2.0% y/y Vs -2.1% y/y in March

By Jai Lakhani

     LONDON (MNI) - The UK's lethargic consumer spending run showed no signs of

abating in April, with lacklustre sales growth meaning consumer spending has

fallen in 11 of the past 12 months, with the index suggesting that 2018 is on

track for its worst performance since 2012, data released by UK consumer credit

firm Visa shows. 

     A pre-cursor to official retail sales data, Visa's UK Consumer Spending

Index pointed to a further slide in household spending in April, with consumers

and businesses blighted by the bad weather. Year-on-year, consumer spending was

down 2.0%, only a touch above March's 2.1% year-on-year decline. 

     Face-to-face spending was down 5.4% on the year and illustrates the

quickest fall for six years. Further weakness was seen in household good and

recreation and culture (the weakest performing sectors). Household goods

deteriorated by 6.1% and recreation and culture was not far away from this

disappointing figure, declining by 5.6% year-on-year. 

     --ONLINE SALES NEAR FLAT

     Online sales growth, positive in both January and February, contracted in

March by 1.2% y/y. However, April's fall of -0.1% y/y suggests a slight

improvement. It is worth noting however that this is still in contrast with

increases in spending through this channel for much of the past five years. 

     Mark Antipof, Chief Commercial Officer at Visa, argues that it would have

been easy to assume the consumer squeeze was over with inflation beginning to

fall and wages growing faster than expected in recent months. 

     However, "Low confidence levels among shoppers and the gloomy outlook for

the UK economy are likely to have contributed to the continued caution. It is

clear that consumers remain in belt-tightening mode, with discretionary spending

on furniture, electrical appliances and recreational activities worst hit," he

said. 

     Visa's UK Consumer Spending Index uses card transaction data based on all

Visa debit, credit and prepaid cards. According to Visa, such spending accounts

for an average 2.3billion transactions every quarter, or roughly one pound in

every three spent in the UK.   

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

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