EU consumer spending across Visa products grew
by 1.2% in Q3 2010 compared to the same point last year but figures
show a fragile European recovery from recession.
The ‘Visa Europe EU Consumer Spending Report,’
produced in conjunction with advisory firm Markit, shows consumer
spending rose to €242bn ($317.3bn) from €202bn in Q3 2009. This
19.6% growth is unadjusted for card issuance, payment preference
and inflation. Visa claims this figure “signals the increasing
preference amongst European consumers for card use, particularly
debit cards.”
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According to Phil Symes, CFO at Visa, more
than €1 in every €9 spent in Europe is with a Visa card.
Average transaction values across the EU fell
to €50.8 from €51 in 2009 and €54.8 in Q3 2007. According to Visa
this highlights increasing consumer and retailer preference for
lower-valued transactions by card.
The report showed troubled Eurozone markets
such as Greece and Ireland recorded “particularly marked” declines
in household spending. However figures for Eastern Europe, France
and the UK were more positive as spending proved to be
“robust”.
“The Visa card spending data add further to
evidence of a fragile economic recovery in Europe,” said Chris
Williamson, chief economist at Markit.
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By GlobalData“Of particular concern is the fact that
spending is falling in austerity focused peripheral countries such
as Ireland and Greece. While not wholly surprising, the data
add to fears that fiscal tightening measures are dragging these
countries back deeper into recession.”
The Visa report is based on an analysis of the
227m transactions across Visa products circulated in the EU. With a
combined rise in unemployment and government cuts across the
continent, the report suggests growth is set to be sluggish at best
heading into next year.
