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Consumers Remain Hesitant

Written By On 09/03/2014

Barclaycard’s statistics considered to be the most up to date figures as far as customer spending is concerned, revealed that last month, shoppers spent only two per cent more than twelve months previously.

The global credit card company which accounts for around fifty per cent of all credit and debit card sales described the small rise as ‘muted.

It appears to indicate that people are still extremely wary about the news of the apparent UK economic recovery and feel uneasy to spend their hard earned savings and salaries.

A recent report conducted by the Department for Business tells how retailers are desperate for help to save their outlets. The evidence suggests that unless the entire process of the way business rates are worked out is altered, high streets and town centres will only get worse.

Their research showed that last month’s store purchasing was no different to that of the previous year - the only increase was that of online which amounted to eight and a half per cent.

However, it appears that people are still prepared to spend their money, but are more particular on what they choose to use it on.

DIY sales rose by eleven and a quarter per cent as homeowners seemed to want to invest in improving their properties - possibly to put them onto the housing market.

Transactions for electrical items have stayed formidable since the festive season as prices are still highly competitive.

Likewise, clothes have sold reasonably well owing to the large reductions by retailers.

Supermarkets have recorded a reduction of more than three quarters of a per cent and maybe more surprisingly, fuel has gone down by six per cent.

Barclaycard's chief executive Val Soranno Keating commented:

The positive noises on the economy and unemployment have yet to drive significant increases in consumer spend. While consumers feel more confident than they have for several years, the upswing in spending growth that we saw in the middle of last year has slowed as pay packets are not matching the performance of the wider economy. Until we see stronger wage growth, spending will likely continue to be muted.