Low growth for February restaurant spend

Low growth for February restaurant spend

Consumer spending grew by 1.2% year-on-year in February, equating to a decline in real terms when adjusting for inflation.

After consecutive months of growth, hotel spending saw a contraction of 3.8%. Pubs and restaurants, traditionally both strong categories, were also not immune, reporting unusually low growth of 7.4% and 3.9% respectively.

Barclaycard believes this drop in spending may be due to consumers re-evaluating their budgets. Almost one in three Britons (32%) say they are cutting back on non-essential items (such as eating out or buying new clothes) in order to make their money go further.

Essential expenditure rose by 2.3% during February, propped up by relatively modest growth in supermarkets of 2.5% as petrol spending contracted by 1.2%.