Spend on eating out grows
Consumer spending on eating out has risen in the last quarter, according to the latest Deloitte Consumer Tracker.
The Tracker showed that overall consumer confidence is at its highest level since the index kicked off two years ago. It is currently at -7%, compared to -18% in Q3 2011.
Discretionary spending on eating out and short breaks rose five points from -17% in Q1 2013 to -12%. It also looks good for the next quarter, with consumers anticipating their net spending on short breaks and eating out will rise over the next three months to -11%, up from -18% compared to the same time last year.
Consumers’ confidence in their level of disposable income increased by seven percentage points in Q1 2014 compared with the previous quarter (-20% vs. -27% in Q4 2013) – the fastest growth since the start of the Tracker. The labour market also showed signs of improving, with less people experiencing a ‘loss or reduction of income’ (12% vs. 14% in Q1 2013).
Net spending on holidays year-on-year has risen significantly to -4%, improving from -8% in Q1 2013. During the second quarter of 2014, consumers plan to spend more on holidays with the net spending expected to rise to +1% from -7% for the same period last year. This is the first time this specific indicator of discretionary spending has been in positive territory since the Tracker began.
Graham Pickett, head of travel, hospitality and leisure at Deloitte, said: “After the storms and flooding which affected much of the country at the start of the year, UK consumers have responded by planning their getaway holidays. Lower inflation, easier access to credit, historically low interest rates and an improving job market have all helped consumers in being more positive and bolstering their spending power. The travel sector mirrors this sentiment and has reported a very positive start to the year with increased bookings in the outbound travel market.”
The Deloitte Consumer Tracker focuses on consumer spending attitudes and behaviours by carrying out a quarterly survey of 3,000 adult UK consumers.