November sees ‘marked slowdown' in hotel, restaurant and bar spending

November saw a ‘marked slowdown' in spending growth in hotels, restaurants and bars according to the latest data from the Visa UK Consumer Spending Index.

Spending growth in the sector was up by 2.2% - the slowest pace since January 2013. That was down from +9.3% in October 2016.

Overall household spending was up 3.2% in November 2016, up from +2.5% the month before, driven by e-commerce expenditure. Face-to-face spending on high streets was down slightly by 1.4%.

Kevin Jenkins, UK & Ireland managing director at Visa, said: "All sectors benefited from an upsurge in growth, with recreation and culture in the lead, as the experience economy continued to power ahead. Household goods saw its highest level of growth since December 2015, as more shoppers took advantage of Black Friday promotions to upgrade their domestic appliances. Clothing and footwear retailers reported an increase in sales too, albeit at a slower rate than in October."

Annabel Fiddes, economist at IHS Markit added: "Whether this strong performance can be sustained into December is increasingly unclear. Notably, consumer confidence has declined in each of the past two months, while forecasts of rising inflationary pressures and unemployment in the next year are all likely to weigh on expenditure growth going forward."

A cut in VAT could plough billions into hospitality sector >>

Six-month high in expenditure growth led by hospitality >>

Spending in pubs and restaurants rises again but confidence falters >>