Brits feel the pinch of rising inflation – Visa

A survey released by the payment company Visa showed the British consumer spending increased at the slowest annual pace in more than three years in the first three months of 2017.

The spending in real terms increased 0.9% y/y in Q1, the weakest quarterly performance since late 2013 and down from 2.7% in the Q4 2016.

Reuters report says, “In March alone, spending dropped 0.7 percent compared with the previous month, after being flat in February.”

"Our data suggests that consumer spending is beginning to slow from the strong levels seen in late 2016, as rising prices increasingly squeeze household purchasing power," said Kevin Jenkins, UK and Ireland managing director at Visa.

Weak Pound a net negative?

The slide in the Pound and the resulting rise in imported inflation is pushing spending lower, but there are no signs of a rise in exports. The data released on Friday showed the visible trade deficit increased unexpectedly to a five-month high of GBP 12.46 billion in February.