Hospitality spending bounces back strongly in September
Hotels, bars and restaurants saw a strong increase in consumer spending in September, according to the latest UK Consumer Spending Index from Visa.
Visa suggests these are tentative signs of recovery after a spending slowdown that began in May in the lead up to the Brexit vote, and a marked decline following the vote in June.
Economic fundamentals remain strong, with employment at a record high and real wages rising, which bodes well for further increases in spending over the final quarter of 2016. However, spending growth may not be as robust as seen in recent years due to ongoing uncertainty over the UK economy, which continues to dampen overall consumer confidence.
Kevin Jenkins, UK & Ireland managing director at Visa, said: "Economic concerns took something of a backseat in September, with consumers reverting to more traditional spending patterns as they took advantage of the last of the summer sun. Growth was once again driven by the experience economy, as people spent more on meals out, family holidays and trips to the theatre."
Annabel Fiddes, economist at business analyst company IHS Markit said: "Meals out and day trips were key areas of spending growth. However, as momentum over Q3 as a whole remains relatively subdued and consumer confidence is still down from that seen at the start of the year, expenditure may set itself on a lower overall growth trajectory given that a lot of uncertainty remains over the UK economic outlook."
Quan Nguyen of Chi Café in London said: "September was a good month for us, with sales improving following a distinctly quiet August. Many of our regular customers returned from the summer holidays, and we saw an increase in passing trade from people opting for a staycation in London."
Josh Beer of the Illustrious Pub Company in Cambridgeshire added: "This was a good month for us with revenue up 6.2% compared to last month. A lot of this was due to the performance of our outdoor catering business, as we were called in to provide food for BBQs, weddings and corporate summer parties.
"Overall, sales at our pubs also benefited from the Euros and July's heatwave. In our site where a large screen TV had been installed sales surged, and among our locations, those that allowed customers to dine al fresco were the best performers."
Hotel, bar and restaurant spend growth slows in August >>
Hospitality spending rebounds strongly despite Brexit >>
Spending growth in hotels, bars and restaurants slows in June >>
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