Consumer spending falls and hospitality spend slows
Consumer spending fell by 0.2% in October, while hotels, bars and restaurants recorded the slowest increase in spend since February 2017 of just 1%.
That is according to Visa's UK Consumer Spending Index, compiled by IHS Markit, which signalled a renewed fall in consumer spending at the start of the final quarter of 2018, the first reduction for three months after growth in August and September.
Adolfo Laurenti, European principal economist at Visa, said: "A dip in October spending dispels the sense of optimism that a few months of small gains had generated during the summer.
"We look at improvement in wages and an easing in inflationary pressures as factors that may fuel hopes for some much-needed respite for retailers following what has been a very difficult year to date."
Annabel Fiddes, principal economist at IHS Markit, added: "The overall picture suggests a relatively disappointing performance in terms of household spending in the year to date. Notably, expenditure has only risen in four months of 2018 so far."
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