Hospitality industry spending sees strong growth during March

Lamont Pridmore - Accountants

According to the latest Barclaycard data, pubs and restaurant spending has seen strong growth across March, leading the way in non-essential spending among UK consumers.

Pubs were responsible for the largest share of non-essential spend with a 15.1 per cent increase year on year, while restaurant spending increased by 12.1 per cent.

The figures, which contributed to an overall non-essential spend boost of 3.4 per cent, when compared to March 2018, the period when the UK was blanketed by snow during the cold snap dubbed ‘The Beast from the East’

However, the company, which oversees nearly half of the UK’s credit and debit transactions, said Brexit was impacting consumer choices amid continued uncertainty over the UK’s departure from the EU.

Barclaycard’s data found that three in ten consumers were concerned that the cost of everyday items would increase while 17 per cent were worried about medicine shortages – prompting caution when spending.

Esme Harwood, director at Barclaycard, said: “In contrast to the extreme weather conditions experienced last year, a milder March resulted in an uplift in spending, with consumers dining out and making the most of the welcome sunshine.

“Despite this, the underlying sentiment is cautious. March was characterised by ongoing uncertainty around Brexit, with consumers concerned about an impact on food prices and supplies. In light of this, consumer confidence in the UK economy is the lowest it’s been since we began recording this data.”