UK consumer spending continued to fall in August, Visa's UK consumer spending index, compiled by IHS Markit showed Wednesday.

Spending dropped 1.3% year-on-year in August, following a 1.2% fall in July. Expenditure has fallen in each of the past 11 months. On a monthly basis, household expenditure rose only 0.8%.

The latest reading of the Visa Consumer Spending Index suggests that retailers continue to face a challenging environment, as spending slipped in August across most categories, Adolfo Laurenti, European Principal Economist, Visa, said.

Data showed that eCommerce spending saw a renewed contraction of 0.5% in August. High street expenditure was down for the fourth consecutive month, albeit to the least extent in this sequence of 1.2%.