Barclaycard Spending Index reveals year-on-year growth for July up 9.9% as summer sales pay off for retailers and spending continues to rise
[USPRwire, Wed Aug 18 2010] Barclaycard Spending Index reveals year-on-year growth for July up 9.9%
Consumer spending on cards saw a near double digit increase in July compared to the same month last year, challenging concerns that consumer confidence has dipped.
According the latest figures released by Barclaycard, traditional summer discounting by retailers appears to have enticed consumers back to the high street, with the amount spent on debit and credit card purchases, in-store and online, increasing by 9.9% in July compared to the same month last year. Year-on-year figures have steadily increased since the start of 2010, with July representing the third month in a row that these figures have increased by more than 9%.
The figures run contrary to recent reports of a dip in consumer confidence - including the British Retail Consortium's Index of Consumer Confidence - suggesting that a gap exists between what consumers say about their financial prospects and how they behave, with spending on the high street remaining strong.
Stuart Neal, head of Barclaycard UK Payment Acceptance said: "If consumer confidence is taking a hit, it's not happening on the high street. If spending remains at this level compared to last year, 2010 could prove overall to be a very good year for retailers."
Compared with June, the spending figures showed a slight increase in July by 1.9%, partly through consumers taking advantage of the earlier start to summer sales and July having 31 days rather than June's 30 days.
The Barclaycard Spending Index is based on spending by all credit and debit cards, across 44 retail sectors at retailers that use Barclaycard Payment Acceptance to process these transactions for them. Barclaycard Global Payment Acceptance processes credit and debit card payments for 85,000 businesses in the UK, around 30% of the UK market.
Notes to editors:
Barclaycard Global Payment Acceptance enables businesses to accept credit and debit card payments.
The data in this index relates to retailers' credit and debit card transactions processed by Barclaycard rather than purchases made with a Barclaycard or those looking to purchase credit cards.
The index does not take into account the effects of any cash payments made to retailers. The index does not adjust for price increases/decreases but measures the value of credit and debit card spending at retailers that use Barclaycard to process their card payments.
Barclaycard, part of Barclays Global Retail Banking division, is a leading global payment business which helps consumers, retailers and businesses to make and accept payments flexibly, and to build credit and access short-term credit when needed.
The company is one of the pioneers of new forms of payments and is at the forefront of developing viable contactless and mobile payment schemes for today and cutting edge forms of payment for the future. It also issues credit and charge cards to corporate customers and the UK Government.
Barclaycard partners with a wide range of organisations across the globe to offer their customers or members payment options and credit.
For further media information, please contact:
Barclaycard Press Office
1234 Pavilion Drive