eCommerce spending continues to rise, says Visa

Consumers are increasingly spending more money through online channels, as Visa reported a 3.2% rise in eCommerce spending in February 2017.

Visa’s Consumer Spending Index for February, compiled by Markit, reported an overall rise in consumer spending of 1.5% year-on-year, up from 0.4% in January.

While eCommerce expenditure rose, face-to-face spending fell 3%.

"Following a marked slowdown in January, consumer spending restored some momentum in February. Overall spend grew at an annual rate of 1.5% from a low point of 0.4% in the previous month," said Kevin Jenkins, UK & Ireland MD at Visa.

"Notably, online retailers continued to enjoy strong growth, while the high street trailed behind, declining for the third month in the last four."

Visa reported consumers spending more on recreation and culture (+3.3%) as well as hotels, restaurants and bars (+1.2%).

Jenkins added: "Growth in the experience sector continues to be a significant driver. Valentine’s Day and the half-term break gave consumers more reasons to dine out and treat their loved ones to short getaways around the UK. At the same time, the level of growth in the leisure and hospitality sectors was softer than we have seen in the past year, showing signs that consumers are becoming more cautious with their discretionary spending. And for clothing retailers, February was yet another challenging month, recording the biggest drop across all the sectors that we track."