Hospitality defies ‘sharper slowdown' in consumer spending
Bars, hotels and restaurants escaped the worst of a sharper slowdown in consumer spending in April, according to Visa's latest consumer spending index.
While overall consumer spending rose at its weakest pace for three months in April, at just +0.5% year-on-year, hospitality recorded a strong uplift of 9%, Visa said.
The index, compiled by Markit, is distinct from Visa's business performance and reflects overall consumer spending, not just that on cards.
Kevin Jenkins, UK & Ireland managing director at Visa, said: "Consumer spending slowed down further in April, as consumers tightened their belts in the face of rising prices running up against stalling wage growth. Annual spending growth fell back to 0.5%, from an already subdued rate of 1% in March.
"While overall figures suggest that clouds are gathering over British consumers, there were still some bright spots. Easter and the extended half-term break may have contributed towards a strong uplift of over 9% in the hospitality sector. Meanwhile, Easter eggs and hot cross buns helped food and drink sales rise at their fastest rate in two years, up nearly 6%. This seems to support the claim of some food and drink retailers that Easter is becoming 'the new Christmas'."
Spend in hotels, restaurants and bars rises again in February >>
Hotel, restaurant and bar spending rises in January >>
Restaurant groups report December like-for-like sales surge >>
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