Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Hospitality spending is up as overall consumer spending falls in July

07 August 2017 by
Hospitality spending is up as overall consumer spending falls in July

Spending on hotels, restaurants and bars remained strong in July, while overall consumer spending fell for the third month in a row, according to Visa's UK Consumer Spending Index.

The 0.8% year-on-year fall in total consumer spend last month dropped slighter faster than June, when it fell by 0.2%. It is now the longest period of deterioration since a five-month run, which ended in February 2013.

However, the hospitality sector recorded the quickest increase in expenditure (up 6%), followed by miscellaneous good and services (up 4.8%) and recreation and culture, which grew by 1.3% after a fall in June.

Kevin Jenkins, UK & Ireland managing director at Visa, said that the overall figures "provides further evidence that rising prices and stagnant wage growth are squeezing consumers' pockets", with clothing, household goods, food and transport among the worst hit sectors.

He continued that hotels, restaurants and bars is likely to have benefited from "an early surge in summer staycations, as the weak pound made holidaying at home more attractive".

Visa is tracking the views of several small businesses across the UK on a monthly basis, to gauge their views on the economy and business conditions.

Josh Beer of the Illustrious Pub Company in Cambridgeshire, said: "As expected, it's been a quieter month for us, with sales down 3% on last year. We're changing our business to accommodate the shift in consumer spending habits and anticipated a slight dip.

"We've noticed that people are either willing to treat themselves to quality meals or looking for a bargain, so our marketing now emphasises our premium offering."

Visa's UK Consumer Spending Index is compiled by global analytical company IHS Markit.

Consumer spending on hotels, restaurants and bars rises despite falls overall >>

British foodservice industry resilient but showing early signs of slowdown >>

Hospitality defies ‘sharper slowdown' in consumer spending >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking