Restaurant spend was down 3.3% in June compared to the same period in 2021, but saw a small month-on-month uplift, according to Barclaycard

Spending at restaurants was down 3.3% in June compared to the same period in 2021, according to data from Barclaycard.

Despite the decline in spend, the category saw a small month-on-month uplift of 0.8%, while bars, pubs, and clubs saw an uplift of 0.1%. Takeaways and fast food recorded growth of 2.3% month-on-month and 9.4% year-on-year respectively.

Overall consumer card spending grew 6.2% in June compared to the same period in 2021, with spending on non-essential items up by 7.1% year-on-year. However, this growth was lower than recorded in May (11.6%) and April (21.2%), continuing a downward trend seen over the past few months.

Shopping at supermarkets and specialist food and drink stores saw year-on-year decreases of 0.8% and 1.1% respectively, with almost half of consumers seeking more value from their weekly shop.

Spending on essential items grew 4.4% - largely due to fuel prices – and average spend on utilities was up 39.6%, resulting in more than two-fifths of Brits cutting back on their energy and water consumption.

91% of Brits are concerned about the negative impact of rising household bills on personal finances, while 48% of consumers – down from 54% in May – are optimistic about their ability to spend on non-essential items.

The entertainment industry and international travel also saw month-on-month growth despite widespread budgeting and uncertainty due to flight cancellations, with hotels, resorts, and accommodation seeing a 3.3% rise.

Sports and outdoor retails, department stores, clothing retailers, and pharmacy, health, and beauty all enjoyed strong monthly growth as well, while digital subscriptions and spending on household items saw month-on-month declines.

José Carvalho, head of consumer products at Barclaycard, said: “The continued rise in fuel, food and energy prices means consumers are having to budget and seek out value where they can for both essential and non-essential purchases.

“While this cautionary approach is impacting supermarket and individual basket spend, there are bright spots to be found, with Brits increasing their discretionary spending on entertainment, travel and takeaways as we head into high summer.”

Jasmine Birtles, financial expert, said: “Brits are understandably worried about their financial futures and, in particular, their ability to pay ever-rising bills. However, it looks like many have been able to put their concerns aside for a while and enjoy the good weather, with sports items and summer clothes performing well.

“The hospitality and entertainment sectors have had a tough few years, with lockdowns and now rising inflation, so it’s heartening to see that, for the moment at least, people are going out to eat and enjoying cinema shows again.”