Business

Leisure spending is holding up as millennials hit the pub

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Leisure spending will hold up in the UK this year as millennials flock to the pub.

Consumers reported that they expected to spend more on enjoying themselves in 2018, according to Deloitte's quarterly survey.

Spending held up in the final quarter of 2017, especially amongst millennials who drove a resurgence in spending at pubs and bars. Drinking spending was up by six points, outstripping food which only climbed three points during the crucial quarter.

Simon Oaten, partner for hospitality and leisure at Deloitte, comments: “These findings paint a positive picture for the leisure sector, which ended 2017 on a high as consumers continued to seek out experience-based activities.

"The increase in leisure spending comes against a backdrop of various income pressures that have been squeezing consumer pockets in the last year, including rising inflation and slow wage growth."

Over the festive period, consumers said they had increased spending across several categories, with the biggest shift in in-home leisure, which includes takeaways, gaming and subscriptions to the likes of Netflix and Amazon Video.

But there was some bad news for the beleaguered casual dining industry, as most consumers said they did not plan to change how much they are spending on eating out.

Chains including Byron and Jamie's Italian have turned to store closures this year due to a downturn in casual dining. Without a boost to spending, more companies could face a restructuring, with EAT the latest food operator to plan store closures.

Instead, consumers are planning to increase spending on long holidays, betting, gym memberships and going to the theatre this year.

Oaten added that the willingness to buy big-ticket items was a "sign of improved confidence" among consumers.

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