Consumer confidence still strong

Consumer confidence showed no signs of stalling today as new figures revealed another increase in credit and debit card spending.

The Credit Card Research Group (CCRG) said payment card spending totalled £16.5bn during June - 19% higher than a year earlier and 5% up on May. Spending was particularly strong in the tourist industry, where figures suggest visitors are returning after the foot-and-mouth outbreak.

Hotel guests put £533m on plastic in June, an increase of 23% on the same month last year and 14% better than in May.

The amount spent in the entertainment sector, which includes restaurants, amusement parks and tourist venues, was also 22% higher on a yearly basis and accounted for just over £1bn of the overall total.

Steve Round, CCRG director, said: "As yet there is no sign of a consumer spending slowdown, despite worries in the economy generally.

"Traditionally such concerns take time to filter through to consumers, but the strong growth in tourist spending, both by UK and foreign cardholders, is positive news."

The only areas to see a reduction in spending were the clothing and household sectors, which fell month-on-month by 2.6% and 5.2% respectively. The drop was blamed on a tough comparison with figures for May when shoppers spent more at the start of the summer sales season.

Around £8.5bn was put on credit cards during June, with another £8bm on debit cards, CCRG added.