Member Article

Eating out leads North East consumer spending bounceback

Consumer spending in the North East has grown above the national average across September, research from Barclaycard reveals.

Spending in the region grew 3.5% while nationally it grew 3% - above infaltiona for a the sixth month in a row.

Restaurant spending led the growth with an 11.2% increase, although the average amount spent on a meal was down -6.3%.

Online fashion consumption was also up as men’s and women’s clothing purchases rose 38% and 36.1% respectively.

Commenting on the national picture, Val Soranno Keating, chief executive of Barclaycard said: “Consumer spending was up again in September, growing 3.0% year-on-year and outpacing inflation for the sixth month in a row.

“Shoppers are spending more but they remain cautious and we’re seeing them make smart choices to stretch the household budget – using public transport instead of the car, eating out more but spending less each visit, and shopping around supermarkets to take advantage of the best offers.

“There’s been a lot of debate over the scale of the economic recovery and whilst we’re not quite out of the woods yet, the fact that consumer confidence is at a six-year high, economic growth is up, and spending continues to grow, clearly shows that we’re on the right path.”

Barclaycard suggested a rebounding housing market contributed to increased DIY spending, although garden centre spending dropped for the first time since March.

Cinema and theatre spending fell by 0.7% year-on-year and hotel spending grew only marginally at 2.4%.

Airline spending dipped into negative territory at -0.3% for the first time since the start of 2012 although the number of airline transactions grew, indicating that falling ticket prices were to blame for the slump.

This was posted in Bdaily's Members' News section by Tom Keighley .