Longest Decline in UK Consumer Spending since 2013

British consumers lessened their expenditures for the third month in July, leading them into the worst decline in four years or longer. This also causes another economic impact at the beginning of the quarter.

According to a report published on Monday, IHS Markit and Visa said that the decline in spending was 0.8 percent year-on-year which appeared to be wide-ranging as the apparel, foods, household goods and transport suffered the hardest hit.

The downturn is compelled by consumers belt tightening because of the inflation rise over wage growth and shoppers’ concerns regarding the extensive outlook after the economic slowdown during the Q1 in 2017.

The negative report was issued after the Bank of England decided to lower its forecast for the economy. BOE Governor Mark Carney gave a warning about the uncertainty of Brexit that puts pressure towards businesses and households.

The consumer figures for July showed a 6 percent growth in spending on hotels, bars, and restaurants. The Markit mentioned that this may be somewhat relative to the expansion of  “staycations,” as the sterling pound weakened which makes overseas holiday become more costly.