Propel Morning Briefing

Spend in UK hotels, restaurants and bars rises 6%

Spending in UK hotels, restaurants and bars rose 6% in July compared with the same month a year ago, according to the latest data from Visa.

The company’s Consumer Spending Index compiled by Markit revealed overall consumer spend fell 0.8% on an annual basis following declines in May and June, the first time overall spending had fallen for three consecutive months since February 2013.

One sector to see a rise in spend was e-commerce (3.6%) but face-to-face expenditure fell 3.7% compared with the year before.

Transport and communication, and clothing and footwear saw the most marked reductions in spend – 6.1% and 5.2% respectively.

Kevin Jenkins, UK and Ireland managing director at Visa, said: “Consumer spend fell for the third month in a row in July, the first time overall spending had fallen for three consecutive months since February 2013. The figure provides further evidence that rising prices and stagnant wage growth are squeezing consumers’ pockets. The drop in spending was felt across a broader range of retail sectors last month, with clothing, household goods, food and transport among the worst hit. There were still some bright spots in July, with hotels, restaurants and bars reporting a 6% increase. The sector is likely to have benefited from an early surge in summer staycations as the weak pound made holidaying at home more attractive.”

 

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