Consumer spending in the UK reached its highest level for five years during the second quarter of 2015, according to new data captured by Visa Europe. These figures are taken from an analysis of debit card and credit card transactions.
In total, consumer spending went up by a significant 1.4% during Q2, compared to the same period last year, according to the same study.
Consumer spending is generally accepted to be one of the main driving forces behind the continuing economic recovery in the UK, boosted by the addition of record low levels of inflation and a slow but steady increase in wages.
The pattern of spending is not excessive, but it does seem that consumers currently have the confidence to splash out on luxury items as well as event spending, including holidays, dining out and cultural experiences. Conversely, spending on clothing stalled in June, despite the raft of attractive discounts offered by most of the leading fashion high street retailers.
Visa Europe have revealed that spending overall dropped, down by 0.8% in June. This is roughly the same size decline that was seen during May, although the compliers of the survey have added a caveat, observing that the measure -when looked at on a month to month basis – is inclined to volatility.
A survey by GfK, a leading market research company, found that morale among consumers was at its highest level for over fifteen years last month, with many shoppers confirming that they were now ready and willing to begin spending their increased level of disposable income.
Both the Bank of England and many leading economists anticipate that the pace of economic growth in the UK will pick up from the per quarter level of 0.4% that was recorded over the course of Q1 this year.