November 8, 2005

Figures back from MasterCard Europe says consumers are reducing their credit card outlay. Figures back from September show a drop on MasterCard branded and they believe increases in fuel bills and petrol prices are making consumers tighten their belts.

They also revealed that we spent £2.59 Billion on MasterCard branded throughout September, that’s 1.2% down on Augusts figures which came out at £2.62Billion. Even after you add the MasterCard branded credit and debit cards together they still had a fall of 3.5% which takes them to just under £5.4 Billion.

High Street retailers where once again hit badly, with purchases down by 2.6% to £1Billion, MasterCard continued to say that debit cards even had a worse fall, dropping by 6.3% to £1.4 Billion, so retailers are not having a great time (lookout for a sale near you) hopefully the credit and debit cards will be back on track, and the sales will jump back up with Christmas just around the corner.

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MasterCard Europe also went on to say that recreation sectors and restaurants had a fall in September as well, recreation fell by 3.9% and restaurants by a bigger percentage 9.9 in fact, so we still have to have our food and enjoyment and why not we work hard for it, the travel industry was not all smiling as they also had a drop in sales, certainly it was only 1.1% taking it’s total to £542.1 Million, well I am sure they can cope.

Senior Vice President of MasterCard Europe Brian Moore, says “UK consumers are tightening their belts as they feel the financial pinch inflicted by rising petrol and fuel prices” he also added “The Bank of England cut interest rates in August in an attempt to reinvigorate High Street spending, but despite last weeks decision to keep rates on hold, another cut may be necessary to boost growth”

Despite all the doom and gloom MasterCard also added that online traders where busier than ever with an increase on transactions, Credit and debit cards went up 1.62% to just under £1.36 Billion, well lets hope that puts a smile on their faces.

Before MasterCard Europe has us “crying in our soup” remember its only one month that these percentages where down, yes the fuel and petrol prices have went up and we have tightened in our belts, but rest assured our credit and debit cards will not stay in our pockets for long.