UK spend falls further as house-price growth slows

UK consumers cut back on spending for a third month in July as house-price growth slowed sharply, dealing yet another blow to the economy.

The broad-based weakness is being blamed on a squeeze on pockets as inflation outpaces wage growth as well as concerns about the health of the economy. The latest figures leave both household expenditure and the property market at their weakest in more than four years.

A report from IHS Markit and Visa showed consumer spending dropped 0.8% year-on-year, with clothing, household goods, food, and transport among the worst hit. Home-price increases weakened to an annual 2.1% in the past three months, its slowest since April 2013.