This month’s Greene King Leisure Spend Tracker reveals that many British households spent more on eating out in July in 2016 than they did in 2015, despite being worried about the economic impact of Britain’s decision to leave the European Union.
Following the result in June, a third of respondents (33%) say they expect their household’s financial situation to be worse off this time next year, while only 8% think that there will be an improvement in their prospects. This is especially true amongst younger adults, with 35% of 18 to 34 year olds admitting to be worried about their future finances.
There is also some concern about the wider UK economy, with almost half (47%) of respondents stating that they believe it will contract in the next year. Again, this is most keenly felt amongst younger adults, with 62% of 18 to 24 year olds and 53% of 25 to 34 year olds expecting the economy to decline. These percentages were notably higher than that of over 55 year olds, reflecting a pattern of voting seen in the Referendum.
While economists debate the likelihood of the UK entering into recession toward the end of the year, it is clear that many households are nervous about the prospect, with 41% of respondents expecting their personal finances to worsen if the economy was to go through a sustained downturn.
- In July, the average British household spent £209 on out of home leisure, a 2% (£3) increase year-on-year and a marginal (£1) increase month-on-month.
- While households without kids have seen spend on Drinking Out fall by 9% (£4) month-on-month and remain stable year-on-year, households with kids have boosted their spending, rising 32% (£14) month-on-month and 39% (£57) year-on-year.
- Spending on Eating Out continues to perform strongly with an 8% increase year-on-year and a 3% increase on June. The latter was supported by a 19%, or £17, increase in monthly spending by households with kids, as families dined out during the school holidays.
- The 3% (£2) month-on-month decline in spending on Other Leisure is driven by reduced spending on Other Live Events and – likely in relation to the lack of domestic football and the end of Euro 2016 – a decline in gambling.
- A huge increase in spend on Drinking Out in households with kids has seen Other Leisure’s share of spend mix fall by 7%. Elsewhere, in London and the South East, Other Leisure’s share of spend mix has fallen by 6% year-on-year.
Commenting on this month’s Leisure Spend Tracker, Rob Rees, Greene King group marketing director said: “This month’s Greene King Leisure Spend Tracker reveals that the uncertainty created by Brexit is worrying Brits of all ages. The impact of Brexit on personal finances is a concern but, in fact, UK adults are more pessimistic about the prospects of the wider economy and the potential threat of recession later this year.”