CONSUMER spending is poised to fall this Christmas for the first time in five years, according to an index.
Households’ expenditure fell by 0.9 per cent in November, despite shopping bonanzas such as Black Friday, according to Visa’s UK Consumer Spending Index. It marked the third month in a row of declines.
Visa’s report said the latest reduction keeps spending on track for the weakest calendar-year performance for spending growth in five years.
Face-to-face spending on the high street fell by 3.5 per cent in November compared to 12 months ago, while online spending increased by 2.4 per cent.
Visa predicted that spending across the whole of the festive season will be lower than a year ago – the first drop since 2012.
Mark Antipof, Visa’s chief sales officer, said: “Festive cheer was in short supply for the UK’s retailers during last month as Black Friday promotions failed to lift consumer spending.
“November’s poor performance means we stand by our earlier prediction that the UK will see its first fall in overall Christmas spending by consumers since 2012.”
He said cutbacks on big-ticket items such as car purchases and bookings for Christmas trips abroad were behind an annual fall in spending in November.
Spending on transport and communication was down by six per cent, clothing spending fell by 2.1 per cent, household goods spending declined by two per cent and food and drink spending was down by 1.8 per cent.
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