Spending on debit and credit cards increases

Spending on debit and credit cards increased by 3.6% in April in a year-on-year comparison. The research was conducted by Barclaycard and suggests that consumers may have a renewed confidence in the UK economy.

Recent figures from the National Institute of Social and Economic Research (NIESR) revealed that Britain’s economy grew by a figure of 0.8% in the three months to April, a figure which may in part have been buoyed by Brits making the decision to increase their shopping budgets.

To get the best rates on your borrowing, you can compare credit cards with Propertywide.

Valerie Soranno Keating, chief executive of Barclaycard, said: “April was a more positive month for retailers with consumer spending up by a respectable 3.6 per cent against April 2012.”

“Although economic data is still mixed, this is the first time since 2011 that we have seen growth above two per cent for three consecutive months, which may suggest a more sustained improvement in sentiment.”

Further findings from the Barclaycard research revealed that the above-inflation rise in consumer spending was greatest in the online market, rising by 12% compared to the same month in 2012, compared to a fall in spending in department stores (down by 8%) and supermarkets (down by 3.4%).

Spending across the whole year also increased at garden centres (up by 8.5%) and DIY stores (up by 3.7%), perhaps revealing that Brits are overhauling the look of their homes rather than investing in a new property altogether. Spending on cinema and theatre tickets also shot up by more than a fifth based on year-on-year comparisons, while spending in restaurants increased by 11%. Barclaycard argues that this reveals a “shift to cheaper forms of entertainment” as consumers look for a quick and inexpensive lift for their spirits amid all the economic doom and gloom.

To get the best rates on your borrowing, you can compare credit cards with Propertywide.

avatar
Posted by: Nicola Severn Categories: Finance Tags: , , , Comments Off on Spending on debit and credit cards increases

0 Responses to Spending on debit and credit cards increases

  1. avatar Eloy Christensen says:

    With credit cards, the rate for purchases (as opposed to balance transfers or cash withdrawals) is used as the main rate to advertise the card.