According to new figures released by Barclaycard, consumer spending on cards saw a near double digit increase in August compared to the same month last year, despite expectations that impending government austerity cuts would dent consumer confidence.
The amount spent on credit and debit cards, in-store and online, increased by 9.2% in August compared to the same month last year. The rising cost of both food and cotton may also be starting to filter through to retail prices, meaning higher spending, Barclaycard said.
This month’s increase represents the fourth month in a row that the annual growth rate has increased by more than 9%.
Stuart Neal, head of Barclaycard UK Payment Acceptance said: “With leading retailers warning that the Government austerity drive will keep the economy in the doldrums and hit consumer confidence hard