Consumer spending growth edges up to three-month high in October

Headline findings:

• Consumer spending increases at fastest annual rate in three months (+2.1%)
• Majority of spending categories see increased expenditure, led by Hotels, Bars & Restaurants and Recreation & Culture (+10% and 5.3% respectively)
• Renewed increase in spending on the high street as online expenditure continues to rise solidly

Kevin Jenkins, Managing Director UK & Ireland at Visa Europe said:

“Overall spending reached a three-month high in October, as a mix of rising wages, improving job prospects and near-zero inflation gave households more money to spend and boosted the buying power of their pounds.

“The warm autumn weather and the school half-term break coinciding with Halloween meant people were spending more money on going away, eating out, and entertaining. The same factors might have brought more shoppers on to the high street too; with bricks-and-mortar experiencing an encouraging revival.

“Looking forward, overall spending looks set to reach higher level this month, as both online and store based retailers are preparing to lure customers in with bigger and better Black Friday deals. It remains to be seen though whether this will come at the expense of trading later in the festive period.”