UK shop­pers spend less in 2017

The Week - Junior - - Home News -

This year will see UK shop­pers spend­ing the low­est amount of money since 2013, ac­cord­ing to fig­ures re­vealed by Visa, a global pay­ments business. Even though spend­ing was up by 0.3% in Au­gust com­pared with Au­gust last year, over­all spend­ing this year is ex­pected to be down.

UK shop­pers are spend­ing less on trans­port and cloth­ing, and fewer peo­ple are vis­it­ing shop­ping cen­tres, gyms and restau­rants.

One rea­son why Bri­tish shop­pers are spend­ing less is be­cause of the fall in the value of the pound af­ter the UK voted to leave the European Union (EU) on 23 June 2016. This means that the pound has lost value com­pared with other cur­ren­cies, in­clud­ing the euro. For ex­am­ple, at the time The Week Ju­nior went to press, £1 was worth €1.10, whereas in July 2015, £1 was worth more – €1.44.

The drop in the pound’s value has forced some shops to in­crease their prices. This is be­cause im­port­ing goods (buy­ing goods from other coun­tries) has be­come more ex­pen­sive as the pound weak­ens. This is bad news for UK shop­pers be­cause im­ported goods have gone up in price. This means that some things cost more than they did a year ago. With peo­ple spend­ing less money, many high street shops are strug­gling to sur­vive.

How­ever, the fall in the pound’s value is good for some Bri­tish busi­nesses. Busi­nesses sell­ing Bri­tish goods to for­eign buy­ers may see an in­crease in the amount of goods they sell, be­cause Bri­tish goods are now cheaper for them. Tourists will also find it cheaper to come to the UK, so ho­tels and tourist at­trac­tions could ben­e­fit.

UK shop­pers aren’t spend­ing as much

as they used to.

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