Spending in pubs and restaurants rises again but confidence falters
Pubs and restaurants saw double-digit spending growth once again in October, as the "experience economy" continued to boost overall growth.
New figures from Barclaycard showed that while overall consumer spending was up 5.5% in October this year as compared to the same month a year ago, pubs and restaurants saw spending rise 12.5% and 12.2% respectively.
Hotels also saw an 11.2% uptick in spending although this was in part due to the falling value of the pound.
Nonetheless, Barclaycard warned that consumer spending has suffered a marked drop, with only a third of people feeling confident in the UK economy, compared to nearly one in two in September.
The company, which process nearly half of all credit and debit card transactions in the UK, said that last month saw optimists surpass pessimists for the first time since it began tracking consumer confidence in 2014.
Barclaycard's research also found that 81% expected to see price rises soon.
"The backdrop of 'hard Brexit' headlines, the weakening pound and high profile issues such as 'Marmite-gate' mean consumers are starting to worry about the impact of inflation on their everyday lives. As we approach Christmas, an expensive time in many households, many consumers are telling us they plan to rein in their spending to ensure they are able to make ends meet."
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