Drivers eager to avoid a proposed fuel tankers strike rushed to the pumps at the end of March to stockpile fuel, leading consumer spending to rise by 0.4 per cent month-on-month.
0.3 percentage points of this increase was directly related to the buying of fuel.
The data, available in this month's edition of the
Visa Europe: UK Expenditure Index, showed that unadjusted domestic Visa card spending at UK service stations increased by 22.7 per cent in March against February.
Despite this seemingly promising trend, once petrol sales are taken into consideration the underlying pattern shows a continuation in subdued consumer spending.
The Expenditure Index points to a decrease on an annual basis, with a 1.7 per cent fall in household spending and a three-month on three-month rate of -0/4 per cent.
On a sector-by-sector breakdown, the unseasonably warm weather contributed to a growth of 2.1 per cent in spending on clothes and footwear amongst shoppers seeking to stock up on their summer clothes, whilst hotels and restaurants saw a 7. 3 per cent increase.
The Index is based on spending on all Visa debit, credit and prepaid cards which are used to make an average of over 1.9 billion transactions every quarter and account for £1 in £3 of all UK spending.
Commenting on the figures, Dr. Steve Perry, commercial director at Visa Europe, welcomed the positive economic signs as demonstrated by March's growth, but argued that overall household spending still had some way to go before returning to pre-recession levels.
Perry said: “Last week’s petrol panic had a tangible impact on overall consumer spending in March as drivers sought to stockpile fuel. Consumer spending in March was 0.4% higher than in February and 0.3 percentage points of this increase was a result of spending at petrol pumps."
“Once the impact of petrol sales is taken into consideration, the underlying trend is one of continued subdued consumer spending. Month-on-month growth has been recorded in two out of three months in 2012 so far but spending in March 2012 was 1.7% lower when compared against March 2011.”
And Chris Williamson, the chief economist of Markit, compilers of the data, outlined his believe that consumers "remain cautious."
He said: "Total spending still remained lower than a year ago, and once the above normal fuel purchasing was accounted for the annual rate of decline would have accelerated. This suggests that consumers remain cautious, reflecting concerns about job security and the ongoing squeeze on incomes.
“Despite the increase in March, consumer spending looks to have fallen over the first quarter of the year, acting as a drag on the economy. However, this decline is likely to have been offset by rising business activity, which will have helped avert a slide back into recession.”