Spending Index Up 9.2% Year-On-Year in July
on: September 29, 2010, 6:58 am
Spending Index up 9.2% year-on-year in July shows talk of Government austerity
drive having little impact on consumer spending.
spending on cards saw a near double digit increase in August compared to the
same month last year, challenging concerns that talk of reduced public spending
is already forcing consumers to be more cautious.
to the new figures released by Barclaycard, the amount spent on debit and credit
cards, in-store and online, increased by 9.2% in August compared to the same
month last year, with new autumn sales, discounts and back-to-school spending
helping to keep the retail sector buoyant. The rising cost of both food and
cotton may also be starting to filter through to retail prices, meaning higher
month's increase represents the fourth month in a row that the annual growth
rate has increased by more than 9%, indicating anything but a dip in confidence.
figures challenge recent reports of a consumer spending slowdown and reduced
consumer confidence, suggesting that a gap exists between what consumers say
about their financial prospects and how they behave, with spending on the high
street remaining strong.
Neal, head of Barclaycard UK
Payment Acceptance said: "With leading retailers warning that the Government
austerity drive will keep the economy in the doldrums and hit consumer confidence
hard, it is good to see a fourth month of increased spending."
there is some cause for viewing the near future with a certain amount of trepidation,
recent indicators are good. Confidence remains relatively high, but it will
be important to see how spending fares when public spending cutbacks begin to
hit people's pockets, and not just the headlines."
in August decreased by 1.9% compared to the previous month, partly due to the
earlier start to summer sales in July.
Barclaycard Spending Index is based on spending on all debit and credit
card transactions, across 44 retail sectors. Barclaycard Global Payment
Acceptance processes credit and debit card payments for 85,000 businesses in
the UK, around 30% of the UK market.
Barclaycard, part of Barclays Global Retail Banking division, is a leading global
payment business which helps consumers, retailers and businesses to make and
accept credit payments flexibly,
and to access short-term credit when needed.
company is one of the pioneers of new forms of payments and is at the forefront
of developing viable contactless
and mobile payment
schemes for today and cutting edge forms of payment for the future. It also
issues credit and charge cards to corporate customers and the UK Government.
Barclaycard partners with a wide range of organisations across the globe to
offer their customers or members payment options and credit, as well as reward
options like the Barclaycard
addition to the UK, Barclaycard operates in the United States, Europe and Africa.
facts published in August 2010;
number of UK customers: 11.1m
- number of International customers: 10.5m
- number of retailer/merchant relationships: 85,000
Barclaycard Press Office
1234 Pavilion Drive
+44 (0)1604 25 1229
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