Fabrice Montagne, UK chief economist at Barclays, also warned of growing consumer concerns, adding: “Fears of unemployment when political support is phased out will likely be a drag.”
However, spending in some of the sectors hardest hit by Covid-19, including retail, restaurants and hotels, has rebounded to levels from last year, Barclays revealed. Britons have increasingly shifted their spending from food and drink to hospitality as consumers “normalize” their purchases, said Montagne.
It came as OpenTable figures revealed diners flocked to restaurants to take advantage of the Chancellor’s discount program. The number of diners seated from online, phone or walk-in reservations has returned to positive territory year on year for the first time since early March on Monday, Tuesday and Wednesday.