'Feel Good' Start To The Year For Consumers

Consumers enjoyed a "feel good start to the year" last month as spending rose at its fastest pace for more than a year and a half, according to figures from Visa Europe.

Global economic jitters which saw stock markets in turmoil failed to put off shoppers as spending climbed by 2.7% compared to the same month last year. It was the best rate since May 2014.

Clothing was up by 5%, as cold weather took hold after a mild end to 2015 that had hurt spending on winter fashions such as overcoats and knitwear in December.

January also saw a boost for the high street, which had seen a setback over the pre-Christmas period at the expense of online retail.

In December, e-commerce saw growth of 7.3% but this edged back to 4.6% last month. Face-to-face spending was down by 0.1% in December but it rose by 2.5% in January – the best pace of growth since May last year.

The figures from Visa (Xetra: A0NC7B - news) were compiled with Markit (NasdaqGS: MRKT - news) , the specialist business survey firm, to reflect overall consumer spending – not just that on its cards.

Kevin Jenkins, UK & Ireland managing director of Visa Europe, said: "It's a feel good start to the year for retailers and consumers, despite the global economic jitters.

"Spending rose most prominently on the high street, though it still looks to be prudent rather than excessive at this stage.

"Leisure and hospitality continue to outperform as sectors, but clothing and footwear retailers were the real winners after a disappointing dip in December.

"The arrival of the winter weather, combined with January sales, saw spend on warmer wears surge 5%. While e-commerce spend continues to grow strongly as ever, this is a clear statement by the high street that it can still attract customers (Other OTC: UBGXF - news) ."