Economy: Growth in credit card use slows

Growth in spending using plastic slowed last month, figures revealed yesterday. While debit and credit card spending in October was 16 per cent up on an annual basis, at the same stage last year it was growing at almost double that rate, according to the Credit Card Research Group (CCRG).

The group said one reason for the slower growth rate is that the debit card market is approaching maturity. The decline has been sharpest for debit cards. And this year there is no sign of the seasonal spending boom.

Elizabeth Phillips, director of the CCRG, said: "It appears that the Bank of England's efforts to rein back the economy are beginning to bite, although it is too early to assess the full extent of the slowdown."