According to payments company Visa, British consumer spending fell for the third month in a row in July, marking the longest losing streak over the past four years.
Experts note that is a sign that the impact of the Brexit vote is distributed among households.
Overall consumer spending dropped by 0.8% in real terms last month compared with the same period a year ago. The fall started in May and continued in June when it decreased by 0.2%. This is longest consecutive decline since February 2013.
Last week, the Bank of England revised down its forecast for economic growth for 2017 and 2018 Partly because of a slower-than-expected increase in wages. The central bank projects a weaker outlook for household spending than for other sectors of the economy.
Visa's data indicate that households persist under financial pressure.
A fall in the exchange rate of the British pound in June 2016 has sparked inflation growth. Meanwhile, the wage growth is slowing, thus squeezing incomes. According to economists, consumer confidence fell to a one-year low in July.
Spending on transport and communications and as well as spending on clothing and footwear were the biggest contributors to the overall decline, down by 6.1% and 5.2% respectively.
At the same time, spending on hotels, restaurants and bars enjoyed a boost as the weak pound deterred Britons from going abroad.
