Consumer spending in pubs up 4.4%

Consumer spending in Britain's pubs and bars has grown by 4.4% during the first quarter of 2011, according to the latest consumer expenditure index from Visa Europe.

The growth in spending doubled from January to March 2011 and was largely generated by eating and drinking out.

Although the report showed the economic importance of Britain's pubs and bars, it also revealed that consumers are cutting back in some areas more than others.

Spending on leisure and culture, such as cinema and theatre, suffered most from this weak spending growth, while supermarket spending remained the same.

Kate Nicholls, strategic director of the Association of Licensed Multiple Retailers (ALMR) said: "This survey reinforces the fact that Britain's pubs and bars are not only at the heart of our communities and social life, but are also vital to the economic lifeblood of the nation.

"Last quarter, as well as generating double-digit growth they also generated one in eight new jobs. They are clearly at the vanguard of our economic recovery and should be acknowledged as such by policy makers, not treated as second class citizens.

"What this survey shows is that households are focused on essentials and only cutting back on certain discretionary items. They may be prepared to sacrifice special events or outings but a visit to the pub or a meal out with friends is one of life's essentials. That's good for our economic wellbeing but critical to the feel-good factor. It's a winning combination and one which the Government would do well to support."

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By Gemma Rowbotham

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