Business

Consumer spending on restaurants slumps in Q2 2019

Consumer spending on restaurants and hotels has decreased by 0.7% in Q2 2019, according to a new report from the ONS.

Its Consumer Trends report for the second quarter has revealed the figures to be the biggest negative contributor to economic growth in the UK.

In Q1 and Q2 combined, consumer spending on hotels and restaurants has decreased by 0.29% compared with the previous year, despite continued economic growth in spending elsewhere.

Patrick Clover, CEO of Edinburgh marketing analytics start-up, Blackbx, said he “worries” that this decline is now becoming a trend.

Clover said: “This is the second quarter in a row in which consumer spending on hotels and restaurants has been the biggest negative contributor to economic growth in the UK.

“What was a blip last quarter is turning into a trend, and something has to be done to arrest this slide. In many respects, this data tells us something we already know, that parts of the hospitality sector are struggling badly. Jamie’s Italian is the biggest casualty of 2019 so far, but it is not alone in feeling the pinch.”

He added: “I hope the government sees these numbers and recognises its responsibility to support two industries that form a vital part of the backbone of the British economy and represent a huge source of employment.”

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