Restaurants and pubs see double-digit growth but consumer spending slows

09 August 2016 by
Restaurants and pubs see double-digit growth but consumer spending slows

Restaurants and pubs saw double-digit growth with the arrival of the warmer summer weather in July; however, overall consumer spending slowed during the month.

Barclaycard's latest monthly spending data shows that while pubs and restaurants saw growth of 12.2% and 12.7% respectively, July consumer spending rose by 2.6%, down from the 3.6% increase achieved during May and June, due to economic and political uncertainty.

More than half (54%) of consumers expressed confidence in their household finances - significantly lower than the 71% average recorded in 2015 - although 63% said they had carried on spending as they did before the Brexit vote. One in three consumers (35%) also said they were less likely to spend on a major purchase than they were this time last year.

Paul Lockstone, managing director at Barclaycard, said softer spend growth in July was "perhaps to be expected", but added that consumers were "still prepared to spend where it matters - enjoying quality time with friends and family".

He said: "Our confidence research tells us consumers are cautious about their future spending plans, however. These are the first full month's figures since the EU referendum, so it's too early to say if this is the start of a long-term trend, but it seems likely consumers will be watching the external environment carefully ahead of any major spending decisions."

Restaurant and pub spending suffered following EU Referendum result >>

Warmer weather brings welcome boost to hospitality spending >>

Restaurants maintain double-digit growth amid spending slowdown >>

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