Hospitality and leisure showed signs of recovery
Consumer spending fell 7.2% in March compared to the same period in 2019, as lockdown continued, according to a report by Barclaycard.
However, spending on hotels, resorts and accommodation, as well as entertainment, showed early signs of improvement as Brits began to make plans for when restrictions are lifted.
Spending on essential items rose by 7.7% compared to 2019, the area of highest growth, while non-essential spend was down 14.5%. Although this represents a slight improvement compared to the previous two months of lockdown.
The report by Barclaycard suggests that spending at restaurants should improve following the easing of restrictions, as 26% of Brits have already pencilled in a post-lockdown activity, 41% of which are customers making reservations to eat outdoors at restaurants.
There is also a glimmer of hope for the travel industry as the 54.3% decline in spending on accommodation marked an improvement on the respective 75.4% and 70.3% falls in January and February. This suggests that holidaymakers have begun booking trips for the remainder of the year.
Raheel Ahmed, head of consumer products at Barclays, said: “With springtime finally here and restrictions starting to ease, it’s encouraging to see a renewed sense of optimism across much of the UK. There are also signs that some of those sectors most heavily impacted by the pandemic, such as hotels, resorts, accommodation and entertainment, are beginning to turn a corner, as many look forward to long-awaited trips and activities with family and friends after lockdown.”
“As Brits spent March sprucing up their homes and garden in preparation for warmer weather, DIY stores also enjoyed significant growth. While it remains a very challenging environment for high-street and hospitality outlets, the fact that many consumers are making plans for the future is a positive sign, and we hope to see this pent-up demand lead to growth in more categories as life after lockdown starts to resume,” Ahmed added.