Consumer spending in the UK continues to decline according to the latest Visa UK CSI data, which showed a renewed fall in household spending during September after a marginal rise in August.

Overall, expenditure declined by 0.3% on an annual basis, following a 0.2% increase in the previous month. Consumer spending has now fallen in four of the past five months.

However, there was good news for Britain’s hospitality industry, which received a boost from increased numbers of tourists visiting the UK to take advantage of a weaker pound.

Spending at hotels, bars and restaurants was up 3.5%, bettering last year’s growth rate of 2.6%.

Expenditure on household goods was down 2.6%, while clothing, health, and recreation all fell by at least one per cent each.

Face-to-Face expenditure has now declined on an annual basis throughout the past five months, with the rate of decline picking up slightly in September to 3.2%.

At the same time, growth in E-commerce spending slowed to 2.8%, which marked the slowest rate of expansion in the past five months.

Spending on Recreation & Culture suffered its biggest decline since July 2013.

There was lower spending across Transport & Communication, which fell by 6.4%.

Kevin Jenkins, UK & Ireland managing director at Visa, said: “Despite a slight uptick in UK consumer spending in August, the story of the past few months has been one of wariness in household spending. September saw another decline in overall expenditure, continuing the recent trend of belt tightening, as the landscape of financial uncertainty takes its toll.

“The recreation and culture sector declined at its fastest rate since July 2013, bucking a trend in which the ‘experience economy has remained buoyant in the face of stagnant wage growth and increased inflation. Despite this, there is a bright spot in this month’s data as hotels and restaurants saw an increase in spending of 3.5%.”