Spending on eating out remains strong – for now
Spending in pubs and restaurants held up strongly during April, despite a fall in consumer confidence around household finances, according to new data from Barclaycard.
The 5.5% increase in overall consumer spending during the month was driven by inflation on essential goods and a late Easter, while meals out during the bank holiday led to a 20.4% and 16.5% rise in spending in pubs and restaurants respectively.
Spending took place at a time when 56% of Brits said they felt confident in their household finances, down from 70% who said the same in March.
It appeared that while growth in discretionary categories slowed overall, up 3.7% in comparison to 4.8% in March, consumers were more relaxed on spending on entertainment (up 15%).
Paul Lockstone, managing director at Barclaycard, said: "A late Easter and rising prices provided a superficial boost to spending in April, but behind the headline figure it's clear consumers are recognising and responding to the inflationary pressures being placed on household budgets.
"Despite growth across a number of categories, the spending picture in real terms is one of growing caution, as seen by declining confidence levels amongst the UK's consumers.
"The relatively dry and warm weather was a natural benefit to pubs, restaurants and garden centres, giving consumers the opportunity to treat themselves where they felt comfortable doing so."
Leisure spend sees Easter bounce >>
January spending in pubs and restaurants outperforms wider economy >>
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