Credit card expenditure has returned to
pre-recession levels, but year-on-year growth was the slowest in
the last quarter, Visa Europe’s UK Expenditure Index shows.

Credit card spending grew for fifth
consecutive quarters, but dipped in Q3 of this year to
7.9 percent, down from 11.3 percent in Q2 and 8.4% in Q1.

Visa Europe claims that the sluggish growth
rates indicates that consumer spending may not play a major role in
the further recovery of the economy.

Despite this, total expenditure was worth
£87.6 billion ($ 139.75 bn) in Q3, £5.6 billion ($8.9 billion) more
than in Q2.

“Whilst spending is still growing, there are
clear warning signs that consumers remain cautious about the
future,” said Steve Perry, commercial director at Visa Europe.

“[The] total amount spent on cards, especially
on debit, has reached its highest levels since the start of
the recession, [but] it seems unlikely that these strong
growth rates will continue. However, the data still
suggest there will be a more muted recovery rather than a
double-dip recession.”

Transactions with Visa cards account for more
than 1.4 billion transactions each quarter – or for over a quarter
of payments in the UK.

Seventy percent of Visa’s
transactions are made with a debit card.