Household spending in the EU fell in Q3 2012 and for the second successive quarter. Spending levels declined once more as a number of economies across the region remained in recession, and confidence reamains fragile. The UK, France, Spain and Italy all recorded drops in household consumption.
The data, which are adjusted for card issuance, preferences and consumer price inflation to enable a better indication of spending habits than raw, unadjusted figures, recorded a -1.6% year-on-year reduction in consumption. In the previous quarter spending had fallen by -2.4%, indicating that the rate of decline eased in Q3. That said, it was the second-weakest performance in spending for three years.
“Our EU Consumer Barometer shows that the rate of contraction eased in the third quarter, but the fact remains that spending across the EU continued to fall on an annual basis. The Barometer is clearly showing that households across the EU are responding to the effects of subdued economic growth or in some cases recession, by reducing spending. We wouldn’t be surprised if this continues into the fourth quarter before recovering slowly in 2013,” commented Philip Symes, Chief Financial Officer at Visa Europe.
Out of the big five EU countries, Spain recorded the 4 sharpest drop in consumption on a year-on-year basisӬ(-5.3%), closely followed by Italy, with a fall of -4.6%. 2 Meanwhile spending in the UK contracted by -3.3%. France saw the weakest decline, with a -0.6% year-on- year drop in spending. The most significant drops in spending were recorded in Portugal and Greece, countries that have been at the epicentre of the Eurozone debt crisis.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More