Spending falls again as UK tightens its belt

HOUSEHOLDS are continuing to tighten their belts amid financial uncertainty, with spending falling again last month.

Average household spending was down by 0.3 per cent in September compared with a year ago, marking the fourth decline in the past five months.

The fall followed a 0.2 per cent increase the previous month, Visa’s UK Consumer Spending Index found. The overall fall last month reflected a 2.8 per cent increase in online spending set against a 3.2 per cent decrease in face-to-face spending on the high street.

Kevin Jenkins, of Visa, said: ‘Despite a slight uptick in August, the story of the past few months has been one of wariness. September saw another decline in overall expenditure, continuing the trend of belt tightening as the landscape of financial uncertainty takes its toll.’

Spending on recreation and culture fell for the first time in three months, by 1.3 per cent, while that on household goods was down 2.6 per cent.

But spending on hotels and restaurants was up 3.5 per cent, perhaps reflecting visitors benefiting from a weaker pound.