Consumer spending falls but hotels remain popular
Hotels, restaurants and bars saw an increase in spending despite an overall drop, figures from Visa’s UK Consumer Index showed.
Consumer spending dropped by 0.8% in July a decrease for a third consecutive month, making it the first time since February 2013 that overall spending had fallen for three months in a row.
Despite this, spending at hotels, bars and restaurants saw a 6% increase which has been attributed to summer staycations and the weakened pound.
The decline in overall spending was largely driven by a further fall in face-to-face expenditure which dropped by 3.7%, as spending through e-commerce channels continued to rise by 3.6%.
Kevin Jenkins, UK & Ireland managing director at Visa, said that the drop in spending “provides further evidence that rising prices and stagnant wage growth are squeezing consumers’ pockets.”