As reported last week with new figures, consumer spending slipped back annually for the first time in nearly four years last month. Shoppers have turned cautious as we expected “rising prices and stalling wages”.
Last month’s drop followed a 0.3% increase in April.
Kevin Jenkins, UK and Ireland managing director at Visa, said: “Our index clearly shows that with rising prices and stalling wage growth, more of us are starting to feel the squeeze.”
It’s not all bad though as figures also showed that shoppers were spending more money on experiences rather than goods. Visa recorded a 3.3% spending increase in areas such as hotels, bars and restaurants, and there was a 2.2% rise in recreation and culture.
I would say that we, as a family, are watching our financial waistlines a little more than we have previously. Everything seems so unsure at the moment.
Are you spending less? And for what reason? Let me know over on Twitter.
Read more over on Sky News.
