Warmer weather brings welcome boost to hospitality spending
Pubs, restaurants and hotels all saw a boost in spending as people made the most of the better weather and bank holiday weekend in May.
Barclaycard's latest monthly spending data reveals consumer spending rebounded in May, rising 3.6%, partly driven by strong growth in pubs (15.2%), restaurants (12.3%) and hotels (6.4%).
Supermarket spending, up 0.2% from -6.1% in April, also seems to be recovering.
The rise is a marked change on the poor growth recorded in March (1.6%) and April (1.9%), and is the second highest level so far this year. However, the outlook remains uncertain.
Consumer confidence in the wider UK economy fell from 35% to 30%, with ongoing uncertainty about the outcome of the EU referendum still a cause for concern.
And although May's figures are a welcome return to stronger spending growth, the three-month rolling average for this year at just 2.4% remains well below last year's 3.9%.
Paul Lockstone, managing director at Barclaycard, said: "Warmer weather is generally a good precursor for a positive uplift in consumer spending and May proved to be no exception. While it's encouraging to see May's numbers move sharply positive, 2016 spend is trending significantly below last year so it will be interesting to see whether these numbers are a seasonal blip or the beginning of a real and sustainable upturn in consumer spending".
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