Hospitality & Leisure best performing sector of all 8 sectors monitored
According to the VISA UK Consumer Spending Index, October saw a 2.4 per cent year on year increase in consumer spending, the strongest rise seen in the UK over the course of the past six months and beating September's rise of 2.3 per cent.
Of all the sectors monitored, the Hospitality & Leisure sector, which includes hotels, restaurants and bars, performed the strongest with year on year growth of 9 per cent.
The Recreation & Culture and Food & Drink sectors saw spending growth reach 7.4 per cent and 4.7 per cent respectively, and the Clothing & Footwear sector saw growth of 4.7 per cent.
Whilst face-to-face spending did strengthen (1.8 per cent), the report showed that e-commerce continues to dominate, with a 4.3 per cent year on year rise in consumer spending.
Despite the positive news for a number of sectors, Transport & Communication saw a dip in consumer spending of 1.4 per cent year on year, as did Miscellaneous Goods & Services (2 per cent) and Health & Education (3.2 per cent).
Commenting on the report, UK & Ireland MD at Visa, Kevin Jenkins, said: "Consumer spending growth rose to a six month high in October. Talk of potential price rises does not appear to have dented consumers' confidence, with spending up 2.5% on the year, on a par with pre-referendum levels.
"As we get closer to the all-important Christmas trading season, it will be interesting to see whether the strong momentum in October continues into Black Friday and beyond."
Visa is tracking the sentiment of several small businesses across the UK on a monthly basis, asking about their views on the economy, business conditions and forecasts for the month ahead. Here’s what one UK business owner, Quan Nguyen of Chi Cafe in London, had to say:
“September was a good month for us, with sales improving following a distinctly quiet August. Many of our regular customers returned from the summer holidays, and we saw an increase in passing trade from people opting for a staycation in London. The warm and sunny weather might have contributed, as people were more tempted to leave the offices for a nice lunch in the sun.”
Our experts at Beavis Morgan work with SMEs across a broad range of sectors, assisting with their business plans, establishing the market for their product through research, analysing their financial requirements both now and for the future, and putting processes in place to enhance cashflow, leverage tax smart strategies, minimise risk and drive financial success and business performance.