Brits spending more on restaurants by cutting back on essential items

By Sophie Witts contact

- Last updated on GMT

Brits spending more on restaurants by cutting back on essential items

Related tags: United kingdom

Consumers are continuing to spend more on eating out by cutting back on essential items, according to the latest figures from Barclaycard.

Spending on restaurants saw double digit growth in April, rising 11.43 per cent year-on-year.

In contrast, the amount spent in supermarkets rose just 6.1 per cent, the worst performance since Barclaycard records begain in 2011.

Clothing retailers took a similar hit, with spending growth reaching a three year low of 3.5 per cent.

The eating out sector vastly defied the overall downward turn, with total spending rising just 1.9 per cent.

A YouGov survey of 1700 adults found that uncertainty over the upcoming EU referendum and falling confidence in the UK economy was driving frugal spending habits.

Barclaycard said consumers were cutting back to save money for leisure activities such as eating out.

Paul Lockstone, managing director at Barclaycard, said:  “Spending on leisure, travel and entertainment proved to be more robust as consumers protected spending on experiences by cutting back on essentials, which is a pattern we’ve seen for a few months now.

“However with this producing diminishing returns, the wider economic picture will need to improve if we are to see consumers return to the level of spending growth we saw last year.”

Restaurant boom

Britons spent a total of £52.2bn on eating out in 2015, according to NPD Group,​ and the figure is expected to climb to £53.3bn this year.

By 2017 UK diners are set to spend an estimated £54.7bn on food and drink, making 11.5bn visits to restaurants, pubs and cafes.

Barclaycard analysed spending data from 27 March to 23 April.

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