U.K. Consumer Spending Drops for First Time in Four YearsBy
Business activity weakens, highlighting economic challenges
BOE Governor Carney will speak in London on Thursday
Inflation’s hold on the U.K. consumer is tightening and the economy is suffering as a result.
Consumer spending fell an annual 0.8 percent in May, the first decline since September 2013, according to IHS Markit and Visa. Separately, accountancy firm BDO said its U.K. business activity index weakened as services, the largest part of the economy, ground to a halt. Citing the impact of the weaker pound, it said services companies are seeing no growth in demand.