Record consumer spend
BBPA welcomes pub spend boost but urges against complacency
Research published on Tuesday by Barclaycard, which processes almost half of the nation’s credit and debit card transactions, saw pub spend rise by 12.5% in October, while restaurants experienced a 12.2% increase.
Overall, consumer spending growth hit 5.5% year on year, the highest since Barclaycard began publishing data.
This was partially driven by the ‘experience economy’ and the strongest-ever increase in cinema spending, which was up 20.9%; rising petrol prices, which saw fuel spend rise 6.6% – a 26-month high; and inflated hotel spending (11.2%), caused by a weakened pound and unfavourable exchange rates abroad.
Boost to tourism
However, the research also showed that consumer confidence had softened due to concerns about inflation with 81% of people stating that they expected prices to rise soon.
BBPA chief executive Brigid Simmonds said a "boost to tourism" had certainly helped the increase in pub spend but added: “It’s also clear that there isn’t room for complacency, with challenges ahead from inflation and a squeeze in spending.
“This is why the sector needs supportive policies, particularly on taxes such as beer duty and business rates, so we can help to drive growth in both the economy and employment.”
'Marmite-gate'
Barclaycard managing director Paul Lockstone added: “The backdrop of ‘hard Brexit’ headlines, the weakening pound and high-profile issues such as ‘Marmite-gate’ mean consumers are starting to worry about the impact of inflation on their everyday lives.
"As we approach Christmas, an expensive time in many households, many consumers are telling us they plan to rein in their spending to ensure they are able to make ends meet.”
