Consumer spending has bounced back ‘strongly’ in September, according to latest data compiled by Markit on behalf of Visa.
The overall uptick of spending rose by 2.4% in the latest Visa UK Consumer Spending Index, marking the highest annual growth rate since April.
This signals that expenditure growth is showing ‘tentative signs of recovery’ after a soft patch that began in May in the lead up to the Brexit vote.
Within the sectors, Recreation & Culture and Hotels, Restaurants & Bars drove figures up, contributing 6.8% and 6% respectively, whilst household goods saw a growth of 2.3%.
E-commerce expenditure increased at the quickest rate since April (+6.0% on the year), while face-to-face spending was broadly unchanged from one year earlier at 0.1%.
Kevin Jenkins, UK & Ireland managing director at Visa, said: “Economic concerns took something of a backseat in September, with consumers reverting to more traditional spending patterns as they took advantage of the last of the summer sun. Overall spend bounced back strongly from a broadly flat August, and was the highest level seen in the past five months.
“The gap between e-commerce and high street retailers continues to widen, with the former posting 6% growth, while the latter saw spend remain almost flat.
“It is too early to say whether the growth seen in September will continue, and positive signs return more permanently following the soft patch that began in May.”