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Consumer spending hit a three-year high in the second quarter of 2015, as spend on the hospitality industry increased, according to new figures.
This is according to Barclaycard’s Consumer Spending Report which found that consumer spending grew 4.5% year-on-year in the second quarter of 2015, as wage growth, higher employment and low inflation boosted consumer confidence.
It found that in the last quarter, spending on travel grew by 8.4% – its highest level since the second quarter of 2013 – with spending on hotels rising 6.9% and on airlines by 4.1%.While 43% of UK consumers said that they are more likely to holiday in Europe this year to take advantage of the weaker euro.
Despite this, the on-going question mark around Greece’s future in the eurozone and economic uncertainty in the Eurozone meant that a quarter (26%) of holidaymakers are opting for a UK staycation instead this summer.
Meanwhile spending in restaurants and pubs saw double digit growth – 14.8% and 12.1% respectively.
Chris Wood, COO at Barclaycard said: “A decisive general election, low inflation, an uptick in earnings and improving job security all contributed to a sense of financial wellbeing among consumers in the second quarter, which in turn led to record growth in both overall and discretionary spending.”
Spending rose in every region in the UK, with the biggest rises witnessed in London (5.4%), the North West (4.9%) and Scotland (4.7%). Even at the lower end of the scale, spending in the North East, East of England and South West still increased by 3.9%, 3.8% and 3.7% respectively.
