The spending habits of British consumers are on the increase, with November and December both seeing a hike in sales.
According to Visa, the United Kingdom has seen the largest increase in sales since 2014, with a 3.1% increase in the month of November.
Data company IHS Markit compiled the information which is a reflection of consumer spending habits within a country.
The growth in December came as a result of consumers spending more money on bars, hotels and restaurants.
Other areas that experienced a rise in spending include beverages, food, communication, transport and tobacco. These had increased by 2.9% and 1.2% respectively.
There were unfortunately a number of negative aspects about the report. It was also found that out of the eight main spending sectors; only four of them had seen an increase since 2016.
In December there was a decline in the household goods, footwear, and clothing sector. They also experienced an increase two months prior to December. The services and miscellaneous goods sector saw a reduction by 0.4% and education and health had declined by 1.6%.
The report also highlighted the fact that online shopping is now dominating high street shopping. E-commerce retailers saw an increase in spending by 5.5% and high street spending by a disappointing 0.7%.
Managing Director at Visa for UK and Ireland said, “There was a continued increase in consumer spending as Christmas approached leading to the fastest growth for that quarter in two years.”
The entire Christmas period for online retailers was a success as they enjoyed continuous high sales. November was a disappointment for offline shops, but saw an improvement during the Christmas rush.
Black Friday in November led to a reduction in sales on household goods and clothing in December. The experience sector experienced the highest growth as consumers travelled to visit friends and loved ones. Food also performed surprisingly well with a 2.9% increase in sales.
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