January 30, 2006

Credit card spending is expected to fall over the next few months says a report by the credit card firm Morgan Stanley.

Britons are expecting to spend £645 on their over the next quarter, down by 11% from the corresponding time last year. It also shows a fall of 31% for the three months leading up to Christmas.

The marketing director from Morgan Stanley, Patrick Muir said: "Following recent reports of a prudent festive period, our index shows that we can also expect to see a drop in credit card spending over the next three months, particularly on luxury purchases.

"Spending on everyday items remains steady, with grocery shopping being the top category for credit card spending."

Spending on every day items like grocery shopping will probably remain the same. The biggest fall is likely to be socializing which is expected to fall by £100.

Men will continue to spend more on their than women, charging an average of £817 to their cards compared with women's £469.