Pubs and restaurants dodge effects of cautious consumer spending
Muted consumer spending last month failed to dampen spending growth in pubs and restaurants, according to Barclaycard.
Data from Barclaycard, which sees nearly half of the nation's credit and debit card transactions, revealed consumers were watching their spending closely in November following months of rising prices and stagnant wage growth.
However, Brits continued to spend on leisure time with friends and family as the nights drew in, which meant pubs saw growth of 11% and restaurants 12.1%, returning to levels seen earlier this year after a brief slowdown in the three months to October.
Only 30% of consumers said they felt confident in the UK economy, down from 37% at the end of September. A gap of 30% now exists between those who are confident and those who are not - the second widest since Barclaycard began tracking consumer confidence in 2014.
Confidence in household finances has also decreased, falling from 64% in October to 56% last month as inflation and the first interest rate rise in a decade weighed on consumer sentiment.
Brits plan to continue spending conservatively, with a quarter (24%) indicating they are less willing to splash out on non-essential items due to the rate hike, and a third (32%) worried that rising prices - such as on food and drink - will force them to spend more on Christmas this year than they did in 2016.
Paul Lockstone, managing director at Barclaycard, said: "Consumer sentiment has deteriorated over the last couple of months after a prolonged period of falling purchasing power. Against this backdrop, it's not surprising that consumers continue to spend conservatively, leading to a second successive month of contraction in real terms."
Spending on pubs and restaurants stays strong despite faltering consumer confidence >>
Spend in restaurants up by 13% in November, according to Barclaycard >>
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