Restaurants gain most from consumer spending growth

Consumer spending grew dramatically in 2014 with restaurants the greatest beneficiaries, according to new research.

Total consumer spending in 2014 was up 3.3%, compared to 2013, but restaurant spend jumped 14.6%.

Data from Barclaycard revealed that the volume of transactions in restaurants was also up at 22.7%, but the amount spent on each transaction was down 5.5%.

The average amount spent per transaction was down across the board, indicating that people are spending more frequently, but a little less when they do.

This is backed up by consumer research commissioned by Barclaycard which found that 63% of people said they were more careful to seek value for money in their spending. Some 70% said that this behaviour would continue as the economy recovers.

Though consumers were spending more in restaurants, spending on food and drink in supermarkets and food retailers showed the least growth. It was up 2.1% in 2014.

Barclaycard chief executive Val Soranno Keating said: "This year we saw a steady recovery in consumer spending, with growth in all major categories of retail. Greater confidence in the future, stemming from an improving economic backdrop, continued falls in unemployment, lower inflation and discounting by retailers have all tempted consumers to part with more of their money.

"Despite increased confidence, however, the value-seeking behaviour that we saw take hold in the tough economic times has become entrenched and we've seen consumers responsibly balancing the books by cutting back in one area to spend in another. I suspect it's a behaviour we'll continue to see until meaningful wage growth."