Consumer spending fell for the fourth consecutive month in December, signalling the weakest annual performance for household expenditure since 2012.

Visa’s UK Consumer Spending Index said households’ expenditure was one per cent lower in December 2017 than in the same month a year earlier.

Moneyhub CEO Samantha Seaton said: “Four consecutive months of declining consumer spending is a clear indication of the impact that high inflation and stagnant wage growth is having on cash-strapped savers. The festive season is often a busy month for people’s money, but household finances are being squeezed left, right and centre and this isn’t showing any signs of improving, for the time being at least.

‘Getting better at managing my finances’ is one of the most common New Year’s resolutions, and as we go into 2018, it’s a good idea to get your finances in order. Technology is transforming the way we interact with our money, and using a digital platform or app to track your spending and set budgets is one way to take charge of your expenditure and manage your money better.

"The implementation of Open Banking this week will also drastically improve consumers’ ability to view and manage all of their financial assets in one place.”

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