UK consumers cut spending on clothes, cars and foreign travel

Visa index shows spending fell for third month in July as rising living costs and Brexit uncertainty hit confidence

Britons are slashing spending on new clothes, cars and foreign holidays, according to new figures that underscore the effect on consumer confidence of rising living costs and the uncertainty surrounding Brexit.

Spending fell for a third consecutive month in July, according to Visa's consumer spending index, which it said was the longest-running slump since February 2013. The 0.8% year-on-year decline in July was worse than June's 0.2% drop, but not as steep as the fall of 0.9% in May.

The leisure sector is likely to have benefited from an early surge in summer staycations