Eating and drinking out spend rises in Q1
Consumers are continuing to eat and drink out despite the economic challenging times.
Spending at restaurants and hotels shot up by 12.9% in the first quarter of 2011, making it the top performing market sector over the period in terms of growth in consumer spending.
That's according to the latest Consumer Expenditure Index from Visa Europe, which shows consumer spending growing by 4.4% during the first quarter of 2011.
The 12.9% like-for-like growth in hotels & restaurants in the quarter compares to a 7% increase in the final quarter of 2010.
"Moreover, the growth rate was the strongest since Q2 2010 and extends the present expansionary period to six quarters," the report says.
Association of Licensed Multiple Retailers strategic affairs director Kate Nicholls said: "This survey reinforces the fact that Britain's pubs and bars are not only at the heart of our communities and social life but are also vital to the economic lifeblood of the nation.
"Last quarter, as well as generating double digit growth they also generated one in eight new jobs.
"They are clearly at the vanguard of our economic recovery and should be acknowledged as such by policy makers, not treated as second class citizens."
However, the growth was not as strong as that experienced in the first quarter of 2010, where an increase of around 16% was recorded.
The performance of the eating and drinking out sector is in contrast to spending on other leisure and culture activities such as cinema and theatre.
Spending in the recreation and culture category, which includes cinemas and theatres, was down 5.1% at the start of 2011, the strongest decline in its history.
Nicholls added: "What this survey shows is that households are focused on essentials and only cutting back on certain discretionary items.
"They may be prepared to sacrifice special events or outings but a visit to the pub or a meal out with friends is one of life's essentials.
"That's good for our economic well-being but critical to the feel-good factor. It's a winning combination and one which the government would do well to support."
