Credit card company Visa reports from its own data, a poor run for UK household expenditure

Consumer spending down 0.8% y/y in July

  • Was down 0.8% y/y in June
  • This is the 3rd consecutive monthly fall
  • This is longest run of falls since 2013 (February of 2013)

This via Reuters. More:

  • Another sign that the impact of last year's Brexit vote is rippling through to households

Kevin Jenkins, Visa's managing director for the United Kingdom and Ireland:

  • "The figure provides further evidence that rising prices and stagnant wage growth are squeezing consumers' pockets"

Not every sector is suffering the same, some bright spots:

  • Visa pointed to continued strength in spending on hotels, restaurants and bars, as sterling's weakness deterred Britons from going abroad. "The sector is likely to have benefited from an early surge in summer staycations, as the weak pound made holidaying at home more attractive," Jenkins said.

More:

  • Visa's data chimed with other signs that households are under financial pressure - from lacklustre retail sales to falling new car registrations and mortgage approvals.
  • A fall in the value of sterling since the Brexit vote in June last year has stoked inflation at a time when wage growth is slowing, squeezing incomes.
  • Consumer confidence dropped to a one-year low in July, according to market research firm GfK

GBP is little changed, updates: