According to Visa Inc and IHS Markit, UK household expenditure fell by 0.9% in October 2017 from September. On a yearly basis, consumer spending declined by 2.4% to the lowest rate in four years.
Month-on-month, the consumer spending index, adjusted for inflation and seasonal effects, fell for a fifth consecutive month over the past six months.
In early November, the Bank of England raised its benchmark interest rate to 0.5% from 0.25% for the first time in a decade.
The biggest drop in consumer spending in October was recorded for clothing and footwear, a 9% fall year-on-year. According to analysts, that is the sharpest decline since 2009.
Expenditures on food and beverages decreased by 2%, while spending on leisure and entertainment fell by 2.9%.
According to the British Retail Consortium, retailers experienced a 2% drop in visitor numbers during the reporting period on a yearly basis.
