UK shoppers spending less

UK shoppers reduced their overall credit card outlay during September, andHigh Street retailers were amongst those worst hit by the reduced reliance on credit. The aggregate volume of credit card purchases declined by 2.56 per cent to just under £1.01 billion. However, an even more dramatic fall in spending on debit cards, by 6.3 per cent to £1.42 billion, also contributed to an uncomfortable month in this sector.

The figures revealed that British consumers spent £2.59 billion on MasterCard branded credit cards during the month, 1.16 per cent down on August's figure of £2.62 billion. The total amount spent using MasterCard branded credit and debit cards also fell 3.5 per cent, to just under £5.41 billion. Despite this news, online traders enjoyed an increase in volumes during the month, with the overall total value of transactions on credit and debit cards rising 1.62 per cent to just under £1.36 billion.

Commenting on the results, Brian Moore, Senior Vice-President, MasterCard Europe, said: "UK consumers are tightening their belts as they feel the financial pinch inflicted by rising petrol and fuel prices. The Bank of England cut interest rates in August in an attempt to reinvigorate High Street spending, but despite last week's decision to keep rates on hold, another cut may be necessary to boost growth."

"These figures underline that shoppers are also conscious of the need to manage their disposable income sensibly. The reduced appetite for credit against a background of falling overall expenditure illustrates consumers' renewed appetite to monitor outgoings. "The British publics' widely acclaimed ability to spot a bargain may also be fuelling the current overall growth in online shopping. Surfing the Internet to compare prices and take advantage of exclusive online offers may be becoming a regular habit for many people."