Eating out boosts leisure sector in referendum aftermath
Eating out has seen the largest quarterly rise in spending compared with other leisure categories, boosting the sector in the referendum aftermath, according to Deloitte research.
In research published today, business advisory firm Deloitte found spending on eating out in restaurants, pubs and cafés saw the biggest quarterly rise in spending over the three months to September, increasing by 3% from Q2, and 6% since Q1.
Spending in the UK leisure sector overall has remained strong in the third quarter of 2016, increasing in most categories. Drinking in pubs and bars, and spending in coffee shops, have both seen a 1% increase in the last quarter.
However, short-term uncertainty could see Q4 leisure spending falling in many categories and Deloitte predicts spending on drinks in pubs and bars is likely to remain flat. Consumers reported that they are likely to reduce spending on eating out in the next three months and, in keeping with the time of the year, short and long hotel and holiday breaks will also likely see a decline in spending, falling by 9%.
Simon Oaten, partner for hospitality and leisure at Deloitte, said: "Given the political uncertainly in the immediate aftermath of the EU Referendum, it is reassuring to see that the leisure sector has performed well and remained resilient.
"The health of the leisure sector is a good barometer of the UK's economic prospects: consumers need sufficient disposable income to justify spending on non-essential leisure activities. Favourable economic conditions, including low inflation, unemployment and interest rates, have encouraged consumers to spend on leisure. Leisure spending will therefore react according to how these economic fundamentals change in the coming months."
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