Slower growth in consumer spending in Q3 across
the EU
Visa Europe’s EU Consumer Spending Barometer shows European
Union countries recorded a 0.5% year-on-year growth in consumer
spending in Q3 2011
London, 29 November 2011 – The rate of growth
of consumer spending slowed in quarter three (Q3) 2011 to 0.5%
year-on-year, following a stronger rate of growth (2.1%) in the
second quarter. Q3 registered the slowest rate of growth of the
year so far and marked the slowest growth rate since Q4 2010.
Despite consumer spending increasing for eight straight quarters
across the whole EU, 21 of the EU’s 27 member states recorded
deterioration in spending when compared to their Q2 performances.
The EU’s three largest economies – France (-0.5%), Germany (+0.9%)
and the UK (+1.0%) – all recorded relative deterioration in
spending compared to Q2 in contrast to a number of Central and
Eastern European countries, which continued robust expansion.
Lithuania and Latvia led the way expanding consumer spending by
15.4% and 13.2% respectively. Estonia followed closely with 9.9%
growth in consumer spending, with both the Czech Republic and
Slovakia registering 5.6% growth a piece. Elsewhere Spain
registered surprising growth year-on-year, increasing spending by
2.5%, while Italy saw a slight contraction (-1.0%).
Visa Europe’s EU Consumer Spending Barometer is based on actual
spend rather than sentiment or opinion, and this data is then
adjusted to allow for Visa card issuance, consumer payment
preferences and inflation. The Barometer is a reliable economic
indicator as it provides the most precise and comprehensive insight
into the health of consumer spending in the EU. Unlike other
indices or surveys that are based on sentiment or opinion in
particular sectors, this Barometer provides an accurate reflection
of real consumer spending across the EU based on consumer’s
increasing preference for card payments, with €1 in every €8 spent
in Europe on a Visa card.
Philip Symes, Chief Financial Officer at Visa Europe said:
"Consumer spending across the EU appears to have held up relatively
well despite ongoing turmoil across European markets. Although
slowing to the lowest rate of growth in 2011, it is the eighth
successive quarter of growth."
About the Visa Europe’s EU Consumer Spending
Barometer
Over one in every eight euros spent in the EU is on a Visa card,
with more than 70% of that spending on debit cards. This means the
Barometer provides a uniquely comprehensive and timely insight into
the health of consumer spending in the European Union.
Visa Europe’s EU Consumer Spending Barometer is based on
spending on all cards issued by Visa – debit, credit and prepaid.
Markit has developed the Barometer by creating a model which
adjusts the raw Visa transaction data for a number of factors.
First, the data are deflated by changes in the number of Visa
cards issued to account for the expansion of Visa’s business.
Secondly, an adjustment is made to offset changing consumer
preference for card usage. This is based on an assessment of the
trends in cash withdrawals and point-of-sale (POS) transactions on
Visa cards. Finally, to account for inflation, the data are
deflated by changes in the consumer price index to provide an
indicator of real changes in household expenditure.
The Visa data have enjoyed a strong positive relationship with
equivalent official numbers in recent years. The Visa data cover a
much wider range of sectors than just retail as cards are
increasingly used for payments such as utility and tax bills.
For the full ‘Visa Europe: EU Consumer Spending Barometer’
please visit http://www.visaeurope.com/en/newsroom/all_reports/latest.aspx.
About Visa Europe
There are currently over 26 million contactless Visa cards
across Europe, distributed by 54 different issuing banks, with over
175,000 contactless terminals. 17 million of these cards and 75,000
of these terminals are within the UK. Monthly contactless spend in
the UK has tripled since the start of 2011, with total contactless
spend across Europe almost quadrupling in the same period. By the
end of the year there will be 30 million contactless Visa cards in
circulation across Europe, with 50 million expected by the end of
2012.
Visa Europe is owned and operated by more
than 4,000 European member banks and was incorporated in July 2004.
In October 2007, Visa Europe became independent of the new global
Visa Inc., with an exclusive, irrevocable and perpetual licence in
Europe. As a dedicated European payment system it is able to
respond quickly to the specific market needs of European banks and
their customers - cardholders and retailers - and to meet the
European Commission’s objective to create a true internal market
for payments.
Visa enjoys unsurpassed acceptance around
the world. In addition, Visa/PLUS is one of the world’s largest
global ATM networks, offering cash access in local currency in over
200 countries.
For more information, visit http://www.visaeurope.com/