CONSUMER spending was “disappointingly weak” last month, despite a surge of shoppers seeking out online bargains in the final days before Christmas, according to a new report out today.
High street spending was particularly challenged, with consumers increasingly turning to the internet as Christmas approached, Visa Europe’s UK expenditure index said.
The report, which is compiled by Markit, found that overall consumer spending was 1.7% lower in December 2012 compared with the same month in 2011. Spending was down by 0.9% month-on-month, following a 0.1% monthly increase recorded in November.
Food and drink spending fell by 2.2% year-on-year in December, while spending on household goods plummeted by 9.2% and clothing spending was down by 0.9%. The hotel and restaurant industry bucked the trend by showing a strong 6.7% annual increase.
Internet shopping as a proportion of overall spend stood at 12.5% in the week before Christmas, up from 11.2% a year earlier.
The study is based on spending on Visa cards and the figures are then adjusted to reflect all consumer spending.
