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UK consumer spending falls for third month in July: Reports

Consumer spending in the U.K. dropped 0.8% year over year in July, marking its third monthly drop and the longest-running fall in more than four years.

The figures showed consumers were being squeezed by rising prices and stagnant wage growth, Visa Inc. said as cited by Reuters Aug. 6.

The two biggest decreases were transport and communications, which dropped 6.1% year over year, and clothing and footwear, which fell 5.2%. Spending on food and drink slipped 0.5% while household goods fell 4%, said BBC News.

Spending in hotels, restaurants and bars, however, rose 6% year over year in July, largely due to "an early surge in summer staycations, as the weak pound made holidaying at home more attractive," said Kevin Jenkins, Visa's managing director for the U.K. and Ireland.

The Bank of England on Aug. 3 cut its economic growth estimates to 1.7% for 2017 and 1.6% for 2018 from 1.9% and 1.7%, respectively, due to slower-than-expected wage rises and a weak outlook for household spending.