Visa has published its UK Consumer Spending Index for January, revealing that face-to-face spending has declined at its quickest rate in four years (-3.1 per cent), while e-commerce spend continues to rise, albeit at a decelerating rate of 4.1 per cent.

Overall, UK spending was up 0.4 per cent year-on-year in January, down from the 2.5 per cent increase in December and the second weakest rate of expansion in more than three years.

Growth continued to be driven by higher expenditure in hotel, restaurants and bars (+5.7 per cent year-on-year), and recreation and culture (+3.1 per cent). Four of the eight spending sectors monitored by Visa registered lower expenditure at the start of this year, with clothing and footwear retailers recording the quickest annual reduction in expenditure since April 2012 (-3.8 per cent). Household goods (-2.7 per cent), and transport and communication (-5.0 per cent) also saw declines.

Kevin Jenkins, UK and Ireland managing director at Visa, said: “Following a bumper Christmas season, there were signs that consumers were starting to rein in their spending at the start of the new year. Annual growth slowed down from 2.5 per cent in December to a five-month low of 0.4 per cent in January, as households monitored rising prices on everyday items and how this would impact disposable incomes.

“Face-to-face was not all doom and gloom in January though, and winners on the High Street did emerge,” he added. “Brits continued the trend of spending on experiences rather than goods, with a near six per cent spending boost in the hotels, restaurants and bars sector and a 3.1 per cent lift in recreation and culture spend.”

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