Growth in card spend at a crawl in catering

Credit and debit card spending in hotels is growing more slowly than in any other consumer sector, says a new survey.

Spending in September increased by 5.2% to £352m, from £335m in the same month last year, according to figures compiled by the Credit Card Research Group (CCRG). "Hotels had a bad month and it is not a positive sign," said CCRG analyst David Joy.

The group's statistics compare 11 sectors, including retail, motoring and travel. Average growth across all sectors was 11%, down from 19% in August and the lowest since the CCRG started recording results in January 1993.

The CCRG believes that the comparative slowdown would have been even greater had it not been for Princess Diana's death, which depressed spending in September 1997.

The entertainment sector, which includes restaurants, recorded a 14.6% jump from £472m to £540m.

But restaurateurs should not be complacent, warned Joy. "The fact that overall growth is only just into double figures indicates that people are spending less generally and the economy as a whole is slowing," he said.