UK consumers cut spending on clothes, cars and foreign travel

UK consumers cut spending on clothes, cars and foreign travel

Britons are slashing spending on new clothes, cars and foreign holidays, according to new figures that underscore the effect on consumer confidence of rising living costs and the uncertainty surrounding Brexit.

Spending fell for a third consecutive month in July, according to Visa’s consumer spending index, which it said was the longest-running slump since February 2013. The 0.8% year-on-year decline in July was worse than June’s 0.2% drop, but not as steep as the fall of 0.9% in May.

“Consumer spending fell for the third month in a row in July, the first time overall spending had fallen for three consecutive months since February 2013,” said Kevin Jenkins, Visa’s UK and Ireland managing director. “The figure provides further evidence that rising prices and stagnant wage growth are squeezing consumers’ pockets.”
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