Consumer spending strengthens in June
- Month-on-month consumer spending increases for the second successive month in June (+1.1%), up from +0.7% in May.
- Year-on-year spending increases for the fourth consecutive month in June: growth of +2.1%, up from +1.5% in May, and the strongest annual increase since October 2010.
- Depressed spending in April has a drag effect on the quarterly spending figures which registers at -0.5% in June.
- Consumer spending strengthens across all three expenditure channels, with a strong increase recorded in online annual spending (+2.1%).
Dr Steve Perry, Commercial Director at Visa Europe said:
“On an annual basis, spending in June grew at its fastest rate in almost three years registering +2.1% growth while month-on-month spending is reassuringly up for the second successive month (+1.1%).
“Spending has strengthened across all expenditure channels with a particular bounce in online spending, which is up +2.1% on last year. There is additional good news for the high street as there has been a halt to falling sales in the clothing footwear sector following six months of negative growth.”
Chris Williamson, Chief Economist at Markit said:
“A second monthly increase in household expenditure during June means consumer spending has risen in every month so far this year with the exception of April. The estimated 2.4% growth in expenditure in the first half of 2013 represents a marked improvement on the reductions seen in 2012 and 2011, and adds to the picture of an economy that is reviving steadily. Increased household spending also corresponds with an upturn in consumer confidence, which we can link in turn to brighter news on the economy from the business surveys, with people being busier at work and earning more, plus rising house prices. Ongoing improvements in these drivers of consumer confidence suggest that spending should continue to rise as we move into the second half of the year.”
