Consumer spending in the hospitality sector increased by 2.5% in July, according to Visas’ UK Consumer Spending Index.
The group said the warmer weather supported solid increases in spend across food and drink and hotels, restaurants and bars categories. However, overall household spending dropped 0.9% in July due to “disappointing growth” in real earnings.
According to Visa, the Bank of England’s recent “interest rate hike” is likely to add further pressure on households’ budgets, and anxieties around the ongoing Brexit negotiations could lead to lower consumer confidence.
Mark Antipof, CEO at Visa, said: “Food and drink, followed by hotels, bars and restaurants, saw the highest spending increases of all categories in July, which the warm weather and football clearly contributed to.”