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101946
Credit card spending on the rise
August 16, 2010
By Caroline Johnson

Consumers in the UK are increasingly using their credit cards for high street shopping, new research has indicated.

Some economists have recently speculated that Britain could be heading for a double dip recession, given the unsteady recovery of the economy.

However, this possibility does not appear to be deterring the nation's shoppers, with figures from Barclaycard indicating that spending on credit and debit cards rose by 9.9 per cent in July.

Furthermore, the group noted that it is the third consecutive month in which annual growth rate was found to be above nine per cent.

The July figures have largely been attributed to summer sales, which have started earlier this year and encouraged many consumers to reach for the plastic.

Stuart Neal of Barclaycard said retailers are still enjoying a healthy level of spending as shoppers take advantage of summer discounts, despite the relatively gloomy economic outlook.

"If consumer confidence is taking a hit, it's not happening on the high street," he said.

"If spending remains at this level compared to last year, 2010 could prove to be a very good year for retailers."

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