Consumer spending dropped further in February making this the weakest start to a year since 2012.
That is according to Visa’s UK Consumer Spending Index for February, compiled by economists at IHS Markit and based on Visa card spend, which accounts for more than £1 in every £3 spent in the UK.
Consumer spending during the month of February fell 1.1% year-on-year, declining for the ninth time in 10 months. However hotels, restaurants and bars bucked the trend and hospitality was the strongest performing sector, seeing expenditure growth of 4.4%.
Mark Antipof, chief commercial officer at Visa, said: “Britons have been in belt-tightening mode since last summer. February’s cold snap certainly didn’t alleviate this situation. On the other hand, hotels, restaurants and bars experienced another strong month. The resilience of this sector is somewhat unique, having reported uninterrupted growth since February 2011.
“As we look ahead into March, consumer spending is at risk of posting one of the worst Q1 results on record.”
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