Home // Latest News // Current Affairs // Hospitality remains strong despite consumer spending slowdown
hospitality

Hospitality remains strong despite consumer spending slowdown

The hospitality sector showed strong growth during a “sharper slowdown” in consumer spending in April, according to Visa’s consumer spending index.

The data, compiled by Markit, showed that the overall growth was at its weakest pace for three months, with just a 0.5% year-on-year increase. However, bars, hotels and restaurants saw the strongest growth with a 9% uplift.

Kevin Jenkins, UK & Ireland managing director at Visa, said: “Consumer spending slowed down further in April, as consumers tightened their belts in the face of rising prices running up against stalling wage growth. Annual spending growth fell back to 0.5%, from an already subdued rate of 1% in March.”

He added: “Easter and the extended half-term break may have contributed towards a strong uplift of over 9% in the hospitality sector.”

Annabel Fiddes, economist at IHS Markit, said: “The trend of relatively modest expenditure growth is likely to extend in to the coming months, as consumers are squeezed by both rising living costs and relatively lacklustre wage growth.”

In other sectors, food and drink sales were up 6% in April, while clothing and footwear retailers saw a consumer spending increase of 2.3%.

About Shekina Tuahene

Shekina Tuahene
Shekina is a multimedia journalist who has lived in London all her life. She is an alumnus of University of Greenwich and Brunel. Shekina loves to read, travel, socialise and listen to music. If you have any story or feature ideas, feel free to drop her a line.

Check Also

Cut Tourism VAT

Cut Tourism VAT ‘disappointed’ with party manifestos

Cut Tourism VAT (CTV) has expressed its disappointment at the main parties’ manifestos in the …

Why not sign up to the Hotel Owner Daily Briefing?

Join our mailing list to let Hotel Owner deliver the latest news from across the UK hospitality industry, directly to your inbox.

We have added you to our list! Please check your inbox to confirm your subscription.