Restaurant and pub spending suffered following EU Referendum result
Restaurant and pub spending dropped in the week following the announcement of the EU Referendum result, according to Barclaycard.
Spending on pubs and restaurants in the seven days beginning 24 June dropped 0.44% and 0.46% respectively, according to the latest consumer spend data from Barclaycard, when pubs and restaurants traditionally experience double digit growth at the end of the month. Pubs saw growth of 20.5% and restaurants 20.1% in the same week of May, suggesting that consumers may be have been more cautious about spending in the days after the Referendum result, although what has been described as the wettest June on record may also have affected footfall.
Spending in pubs increased 12.1% and restaurants 11.6% over the second quarter as a whole. During June, pubs recorded a rise of 12.7% during the start of the European Championships and spending in restaurants also proved robust, up 11.6% across the quarter and 11.2% in June.
Overall consumer spending in the second quarter rose 3.1%, up from 2.8% in the first three months of 2016. Data from the seven days immediately after the UK's decision to leave the EU shows spend growth remained resilient (2.14%) although several key categories showed more muted growth than traditionally seen at the end of month.
Paul Lockstone, managing director at Barclaycard, said: "While it's too soon to draw long-term conclusions on how spending and sentiment have been affected by the outcome of the referendum, the early indication is that the majority of consumers avoided a knee-jerk reaction. Spending grew in the week immediately following the vote, suggesting that shoppers were pleased that the uncertainty that has hung over the economy had at least in part been lifted.
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