A survey of Visa card users indicated that UK consumer spending declined considerably earlier this year, marking the steepest fall over the past five years. Dismal weather as well as a long-term decline in household spending kept consumers away from visiting shops. These factors caused major disruption to retailers, according to analysts.
Visa said that inflation-adjusted consumer spending fell by 1.4% year-on-year in the first quarter to mark the biggest decline since the fourth quarter of 2012. Spending in March slid by the most since October 2017, down 2.1% after a 1% fall in February.
According to the payment company, the weakness in consumer spending indicated lower confidence among most households as well as bad weather in late February – early March.
At the same time, online sales fell for the first time in 10 months.
The UK economy slowed in early 2018 amid uncertainty surrounding the country’s withdrawal from the European Union in 2019.
