Credit cards spending in the UK recovered after a dramatic fall 

The report sheds light on UK credit card issuer data during June and July

credit cards

Credit cards spending in the UK recovered after a dramatic fall. Source: unsplash.com

According to Payments Cards & Mobile, UK’s spending in June started to grow, up 13% in May and by a further 11% in July to £598.

That follows the dramatic fall in average spending on UK credit cards for January to May 2020 down 27% year on year.

From January to June 2020, spending on cards dropped 8% year on year.

Along with that, the percentage of active accounts started to stabilize and marginally grew in June and July. Nevertheless, it is still 6% lower than in July 2019.

The report reveals that during June and July, overall card limits reached their highest levels since at least 2002. They remain noticeably higher than in April 2008, during the last financial crisis. 39% of accounts have limits in the range of £5,001 to £10,000. Although, their average balance is £1,207.

The percentage of payments to balance dropped in June, but in July increased to 28%. Nevertheless, they are still 14% lower than in July 2019.

The increase in spending in June was expected, as additional business sectors were able to reopen. And with further restrictions lifted in July on hotels, gyms, and attractions, this trend continued. Although regional lockdowns were introduced, as consumer confidence grows or as consumers turn to credit cards as the only spending option, we expect that spend will continue to increase in the coming months
Stacey West, principal consultant for FICO Advisors

We’ve reported that four in ten consumers in Europe have experienced a drop in their household income due to the COVID-19 pandemic

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