Consumer spending rises to two year high, says Visa
In the run up to Christmas, the UK splurged out on the biggest quarter of spending since 2014, according to new data from Visa revealed on Monday.
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Average year-on-year growth for each month in the fourth quarter of 2016 was twice as high as the average rates for the previous two quarters at 2.8%, according to data compiled for Visa by Markit, with consumer spending up +2.6% on the year in December.
Online retailers beat the high street with the highest spike in sales over the whole of the Christmas period, while bricks-and-mortar retailers saw improvement after a “disappointing dip” in November.
Spending growth on e-commerce categories grew 5.5% year-on-year in December, but face-to-face categories saw insip growth of just 0.7%.
The 'experience' sector led the growth spurt, with consumers going to Christmas markets and travelling to visit loved ones for their celebrations.
Hotels, restaurants and bars saw spending rise 7.3%, while recreation and culture at 6.4% saw the strongest increases.
Food performed well with spending up 2.9%, while spending on clothes and household goods fell in December due to the Black Friday sales hike at the end of November.