Global analytics software provider FICO today released its analysis of UK card trends for February 2021 with increased financial stress and reduced spending painting a conflicting picture of UK consumer finances.
“Our February data reflects another month in lockdown and government support, with falling average spend, lower general card and cash usage and decreasing delinquency rates,” explained Stacey West, principal consultant for FICO Advisors. “Those able to save have put more aside but those suffering from financial stress have seen no change in the circumstances contributing to their situation. Consequently, FICO has seen a continuing increase in the average amount consumers are spending over their credit card limit, which could be a clear sign of financial stress.
“April’s data will show whether the easing of lockdown has an impact – and what sort of financial pressure that might create. With sectors such as non-essential retail, personal care and outdoor attractions as well as outside hospitality and holiday lets opening from 12th April, we will see whether consumers remain cautious in their spending habits – perhaps waiting until they have received both doses of the vaccine – or whether the temptation to take advantage of the new spending opportunities will be too much to resist, even for those who haven’t been able to accrue savings over the last year.”
Spend on UK cards decreased along with the percentage of payments
The average spend on UK credit cards fell by £33 to £547 in February 2021, with sales 16 percent lower than a year ago. “This drop is opposite to the usual trend we see at this time of year,” continued West. “However, with a full lockdown in place, the uncertainty surrounding foreign summer holidays ongoing and the ongoing vaccination programme, this is not unexpected.”
