The global payment tech company Visa reported a slump in UK’s e-commerce spending in April, consumer spending online also sits at diminishing figures after rising prices threatens the British household. The slump is at a year-over-year period, the lost is another first after four years of continual growth both in spending and in technological advancements.
Visa’s Data and Forecasts
Visa recently released a statement saying that the online consumer spending dips at a 0.1% annual slump in April, this low was last seen on September 2013. The payment company also iterated that the figures also shows a negative ripple for companies as forecasts remain weaker for further months ahead.
Visa’s managing Director Kevin Jenkins said that Consumer spending slowed down further in April, as consumers tightened their belts in the face of rising prices running up against stalling wage growth. Annual spending growth fell back to 0.5 percent, from an already subdued rate of 1 per cent in March.” But despite the laggard consumer spending; Jenkins said that there are “still some bright spots”
Consumer Spending Statistics
According to reports, the index showed a half percent lower in April’s e-commerce as opposed to March’s 1% increase. The month’s data marks it as the most sluggish growth rate in the last three years, the retailers are looking to be in a conundrum; from a separate report done by the Institute of Chartered Accountants in England and Wales conveyed that even with the strengthening business confidence in the quarter, retailers are still caught on a slack on all nine sectors covered.
IHS Markit Annabel Fiddes noted that “The trend of relatively modest expenditure growth is likely to extend into the coming months, as consumers are squeezed by both rising living costs and relatively lackluster wage growth,” IHS Markit is a coalition that compiles information and analytics.
On statistics based on Deloitte latest quarterly survey, all six measures from the firm faced dropped in consumer optimism while overall confidence barometer fell by 1% compared to the previous quarter. Deloitte’s chief economist Ian Stewart said, “Since last summer’s EU referendum consumer spending has held up well, but with inflation rising and nominal wage growth starting to slow, consumers are beginning to feel a squeeze on their disposable income,” Stewart ended saying “In March, the rate of inflation stood at 2.3 percent, above the Bank of England’s 2 per cent target and the highest in more than two years. There are already some signs that these pressures are contributing to a slowdown in consumer activity,”
Inflation Weighs British Consumer
Among the prevalent problems, inflation seems to take the British market by storm with an increase of 2.3% in the same quarter; and according to sources, it is still on track to grow through the year. The surge in the inflation rate is looking to run faster than wage increase which puts workers in a quandary as income problems strike.
The recent surge in the inflation can signal the Bank of England to raise its forecast for consumer-price growth somewhere around this week; the changes can push British households to a certain brink. Another factor that triggered the inflation surge is the weakening sterling since the Brexit.
for your round-the-clock market update! We provide you with the latest news surrounding Forex, commodities, automobile, consumer, financial, economy, and technology. Never miss any news beat! Subscribe now!