Visa Europe Consumer Spending Index: MORE growth in April
It should come as no surprise that yet more growth has been reported by Visa Europe's Consumer Spending Index
9 May 2016
Visa Europe’s latest Consumer Spending Index for the month of April has been published, and it should come as no surprise that another strong month has been recorded. Consumer spending across all payment types (credit and debit cards, and electronic payments) rose by 9.7% year-on-year, while online shopping saw a massive +18.7% spike. Retail spending also accelerated to +5.7% for the month.
The 9.7% growth in April represents an increase on the previous month’s growth, and the second-strongest growth since the Index was created in September 2014.
In the breakdown, the strongest expansion was in Recreation and Culture, which increase by an impressive 20.7% year-on-year. This strong growth is cited as due to April being a time of year when consumers begin booking summer holidays.
Double-digit expansions were also seen in Health and Education spending, Household Goods and in the Hotels, Restaurants and Bars sector.
This strong expanison was not across the board however. The Clothing and Footwear sector, which saw a year-on-year of just 1.8%. This slow growth is beleived to be due to April’s unseasonably cold weather, which left consumers reluctant to make any clothing purchases.
Philip Konopik, Visa Europe’s country manager for Ireland, said that the eCommerce spike was also due to the poor weather in April. “The strong increase in Recreation and Culture spend, particularly on Cruises and travel to the United States, is a clear sign of increased optimism among households,” said Konopik. “This confidence can be seen right across the country with every county reporting a rise in new car registrations last month.”