Figures show surprise rise in spending

 

Amidst the general economic gloom and talk of recession, new figures show a surprise increase in spending on debit and credit cards in the UK in September.

 

Figures from Apacs, the UK payments association, show that some 497 million purchases were made on debit cards during September, a 12.7% rise on the previous month. Credit card purchases were up by 9.4%, ahead of gross lending which rose by only 7.4%.

 

Furthermore, the total value and volume of purchases was higher in September than during any month in the last year.

 

The findings have surprised economic experts, who expected a period of widespread belt-tightening as the prospect of recession looms.

 

One theory suggested to explain the data is that consumers have been spending the £60 rebate they received during September the 10p income tax controversy and the Government’s U-turn. Other commentators believe that people are spending more on home improvements instead of moving house, as the housing market slows down.