July 7 British consumer spending grew at the
fastest rate in four years in the second quarter as soccer fans
bought more food and drinks in supermarkets and pubs after the
World Cup kicked off in June, a report from Visa Europe showed.
The Visa Europe UK Expenditure Index, which takes card
spending data, showed that consumer spending increased for the
ninth consecutive month in June, up 0.4 percent from May and 0.6
percent compared to June 2013.
Although the year-on-year rise in June was slightly slower
than May's 1 percent, it came off a strong base the year before:
In June 2013, spending rose 2 percent to mark the fastest growth
since October 2010.
Overall, the data means spending grew in the second quarter
at the fastest year-on-year rate since mid-2010.
"Visa Europe's UK Expenditure Index dovetails nicely with
other data we have to signal the ongoing expansion of the UK
economy in the second quarter of the year," said Paul Smith,
senior economist at Markit, which compiles the report on behalf
of Visa Europe.
"With the high street showing continuing signs of underlying
improvement, the latest numbers further add to views that
monetary policy tightening by the BoE is now firmly on the
All key retail sectors recorded an increase in June.
Bars, pubs and restaurant however, enjoyed particularly
strong growth thanks to the World Cup and warmer weather,
according to the report. Football fans also boosted their
spending on sports clothing and food and drinks in supermarkets
as they prepared to watch the games.
Face-to-face spending volumes and online spending rose by
1.1 percent and 2.6 percent in June from a year before, while
spending via mail or telephone was down 2.2 percent.
(Reporting by Silvia Antonioli; Editing by Louise Heavens and