Consumer spending sees biggest decline ever

Consumerspendingfellfor the third month in a row in July, marking the biggest period of decline seen since 2013, a report found.

Spending fell by 0.8 per cent annually in July, following annual declines in May and June, according to Visa’s UK Consumer Spending Index.

It said this was further evidence households are feeling the squeeze from rising prices and stagnant wage growth.

The July fall was the first time since early 2013 spending has declined annually for this length of time.

Transportandcommunication recorded the biggest annual decline in spending, followed by clothing and footwear and household goods.

Bucking the declines, spending on hotels, restaurants and bars jumped by 6 per cent annually in July.

Annabel Fiddes, economist at IHS Markit, said: “Uncertainties linger over the direction of the economy and the outcome of the ongoing Brexit negotiations.”