CREDIT AND DEBIT CARD SPENDING FALLS
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| Article date: 13/10/2005 : 16:11:09 |
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Consumers in the UK reined back spending on cards in September, according to figures from Mastercard.
The public spent a total of £5.41 billion on MasterCard branded cards, which was a decrease of 3.5 per cent from August.
Debit card spending suffered badly, dropping by almost five per cent, and credit card spending also fell by just over one per cent.
Brian Moore, senior vice-president of MasterCard Europe, said: "UK consumers are tightening their belts as they feel the financial pinch inflicted by rising petrol and fuel prices.
High street stores were dealt a big blow, as debit card and credit card spending slumped by over six per cent and almost three per cent respectively, and Mr Moore believes the Bank of England may have to go further to turn the situation around.
"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," he said.
The figures also state that there was an increase in online spending last month by 1.6 per cent to just under £1.36 billion.
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