Spending falls at fastest rate for four years as consumers tighten belts

Household disposable income is squeezed by cost of living increase, prompting fall of 0.3% in spending in latest quarter

Household spending has fallen at the fastest rate in almost four years as rising prices have made consumers less willing to splash out on furniture, clothing and trips out.

Spending fell by 0.3% between April and June compared with the same period a year earlier, the biggest drop since the third quarter of 2013, according to Visa's consumer spending index.