British consumer spending continues to drop

British consumer spending continues to drop

Consumer spending in the UK has dropped for the third straight month in July. It is the first time in four years that there was a three-month drop, with analysts pointing to the Brexit.

Higher prices and lower wage growth

In July, expenses dropped 0.8 % compared to the year before and it experienced similar drops in May and June. It hadn’t happened since February 2013, when the economy was still recovering from the financial crisis.


This time around, the brexit is weighing down the British consumer’s spending. “The figure provides further evidence that rising prices and stagnant wage growth are squeezing consumers' pockets”, said Kevin Jenkins, Visa's managing director for the United Kingdom and Ireland.


Only last week, the Bank of England lowered its economic growth forecast for 2017 and 2018, mainly because wages are not growing as much as expected. The slower wage growth is amplified through inflation caused by the Brexit and the weaker pound.


Strong hospitality industry

Clothing sales dropped 5.2 % in July, the second largest drop in a five-year time frame. It comes as no surprise, seeing how Brits mainly import their clothing. However, at the start of July, there was a slight surge, mainly thanks to the excellent weather, but unfortunately, the sales did not sustain.


The hospitality industry did not suffer as much as the rest of the economy, because many Brits decided to go on vacation locally, spending more money in their own establishments, thanks to the weaker pound. 

Questions or comments? Please feel free to contact the editors

Gerelateerde items

LensOnline targets German expansion


Belgian LensGroup, which dominates Belgian online contact lens sales alongside LensOnline, is slowly conquering the European market. Following the Netherlands, Italy and Spain, it is now targeting the German market.

Europe halts geoblocking


Negotiators for the European Parliament, the European Council and the European Commission reached an agreement on a geoblocking ban. With geoblocking, web shops could exclude visitors from other countries.

Hema targets extensive expansion in Germany


Store chain Hema has major plans for Germany: in the next three years, it will open at least seventy new stores, which is a huge increase compared to the eleven it currently has in the country. Hema also targets shop-in-shops and stores in train stations.

Scotland is first to enforce minimum alcohol price


Scotland is the first in the world to finally enforce a minimum price for alcohol. The law as approved in 2012, but whisky distillers managed to block the legislation up until now.

Amazon almost ready to launch first cashierless Go


According to certain sources, Amazon is currently hiring construction managers and marketers for its Amazon Go team. This move may suggest that the cashierless supermarket concept may be ready for prime time – for real this time.

Turnover for 100 largest web shops in Belgium grows 13.5 %


Turnover for the top 100 web shops in Belgium grew 13.5 % from 3.7 to 4.2 billion euro. Digital sales for food items and household products have increased considerably.

Back to top