LONDON (Reuters) –
Shoppers carry luggage in London, Britain August 25, 2016. REUTERS/Neil Hall –
British shopper spending grew over the three months to August on the quickest tempo since January, chiming with different indicators the financial system has picked up some steam in mid-2018, a survey from funds agency Visa confirmed on Monday.
Inflation-adjusted shopper spending between June and August was zero.three p.c greater than within the three months earlier than, up from development of zero.2 p.c within the May-July interval, Visa mentioned, based mostly on its credit score and debit card utilization information.
Visa’s report follows official figures final week that confirmed Britain’s financial system grew at its quickest in practically a 12 months within the three months to July due to robust shopper spending, lifted by the World Cup and unusually heat climate.
“The prolonged good weather has seen sustained performance for hotels, restaurants and bars, and ‘food and drink’ again topping the sector categories,” Visa chief business officer Mark Antipof mentioned.
Compared with a 12 months in the past, Visa’s measure of shopper spending stood zero.four p.c greater in August, following a zero.9 p.c annual drop in July.
Still, the outlook stays clouded by uncertainty concerning the phrases of Britain’s exit from the European Union — due in simply over six months — in addition to rising protectionism that would trigger world commerce to gradual.
For these causes the British Chambers of Commerce (BCC) on Monday chopped its financial development forecast for Britain in 2018 to 1.1 p.c from its earlier prediction of 1.three p.c, which had been in keeping with the present Reuters ballot consensus of economists. [ECILT/GB]
If development is as weak because the BCC expects, it will be Britain’s worst annual efficiency for the reason that 2008-09 recession brought on by the global monetary disaster.
The BCC trimmed its forecast for development in 2019 to 1.three p.c from 1.four p.c.
“The changes to our forecast indicate that the UK economy is in for a testing period, with persistent uncertainty and the possibility of a disorderly EU exit increasingly weighing on the UK’s growth prospects,” BCC economist Suren Thiru mentioned.
Reporting by Andy Bruce, modifying by David Milliken