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You can find the current article at its original source at https://www.theguardian.com/money/2017/oct/09/staycations-debit-cards-weak-pound-inflation-brexit-uk-finance
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| Staycations on the rise as Britons use debit cards less abroad | Staycations on the rise as Britons use debit cards less abroad |
| (4 months later) | |
| Weak pound, higher inflation and Brexit uncertainty likely to be behind fall in overseas spending, says UK Finance | |
| Jill Treanor | |
| Mon 9 Oct 2017 17.09 BST | |
| Last modified on Mon 27 Nov 2017 15.44 GMT | |
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| Debit cards are being used less often abroad because the fall in the pound after the EU referendum has encouraged more Britons to holiday in the UK, the banking industry has claimed. | Debit cards are being used less often abroad because the fall in the pound after the EU referendum has encouraged more Britons to holiday in the UK, the banking industry has claimed. |
| UK Finance, the financial sector trade body, said staycations helped explain why activity on debit cards overseas was 13% lower this August than a year ago. Since the UK voted to leave the EU in June 2016 the pound has fallen 11% against the dollar and 14% against the euro, making it more expensive for UK-based holidaymakers to take foreign holidays. | UK Finance, the financial sector trade body, said staycations helped explain why activity on debit cards overseas was 13% lower this August than a year ago. Since the UK voted to leave the EU in June 2016 the pound has fallen 11% against the dollar and 14% against the euro, making it more expensive for UK-based holidaymakers to take foreign holidays. |
| In its latest debit card report, UK Finance said: “Activity in August was 13% lower than a year ago in both value and volume terms. This decrease, in part, highlights the growing consumer preference to holiday in the UK as sterling’s purchasing power abroad has weakened considerably since the Brexit vote.” | In its latest debit card report, UK Finance said: “Activity in August was 13% lower than a year ago in both value and volume terms. This decrease, in part, highlights the growing consumer preference to holiday in the UK as sterling’s purchasing power abroad has weakened considerably since the Brexit vote.” |
| Official data for July 2017 showed a fall in the number of people travelling to Europe and beyond, with a 2% slide to 6.9 million, while spending by UK residents on foreign holidays also declined by 2% to £4.5bn on the same month a year earlier. | Official data for July 2017 showed a fall in the number of people travelling to Europe and beyond, with a 2% slide to 6.9 million, while spending by UK residents on foreign holidays also declined by 2% to £4.5bn on the same month a year earlier. |
| UK Finance’s data for August 2017 showed a rise in the total use of debit cards when compared with the previous month as the school holidays got into full swing. The number of purchases rose 0.4%, while spending was 0.8% higher at £3.2bn. | UK Finance’s data for August 2017 showed a rise in the total use of debit cards when compared with the previous month as the school holidays got into full swing. The number of purchases rose 0.4%, while spending was 0.8% higher at £3.2bn. |
| Overall, the number of debit card payments has risen 12% since August a year ago, as domestic use increased, while the value of payments also rose, by 4.7%. | Overall, the number of debit card payments has risen 12% since August a year ago, as domestic use increased, while the value of payments also rose, by 4.7%. |
| UK Finance, created when a number of industry lobby groups merged this year, said higher inflation and the uncertain economic backdrop since Brexit had also influenced the use of debit cards. | UK Finance, created when a number of industry lobby groups merged this year, said higher inflation and the uncertain economic backdrop since Brexit had also influenced the use of debit cards. |
| When measured against the previous month, the value of debit card payments rose by 0.8% – its strongest growth for level for 11 months, which UK Finance said was in part the result of the higher inflation rate. | When measured against the previous month, the value of debit card payments rose by 0.8% – its strongest growth for level for 11 months, which UK Finance said was in part the result of the higher inflation rate. |
| However, UK Finance said the month-on-month increase in the use of cards was 1.1% – lower than the monthly growth rate of a year earlier because of the “continued economic uncertainty in the UK, a relatively low rate of economic growth and weak consumer confidence”. | However, UK Finance said the month-on-month increase in the use of cards was 1.1% – lower than the monthly growth rate of a year earlier because of the “continued economic uncertainty in the UK, a relatively low rate of economic growth and weak consumer confidence”. |
| The growing use of contactless cards is among the reasons for the fall in the average transaction value on debit cards used in the UK to £38.37, down from £41.82 a year ago and £48.70 seven years ago when it peaked. | The growing use of contactless cards is among the reasons for the fall in the average transaction value on debit cards used in the UK to £38.37, down from £41.82 a year ago and £48.70 seven years ago when it peaked. |
| Consumer spending | |
| Debit cards | |
| Banks and building societies | |
| Banking | |
| Financial sector | |
| Economics | |
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