Britain’s economic woes have hit the high street, new research has revealed, as the service industry has reported consumer spending has dropped to the lowest it has been for a decade. Restaurants, bars and cinemas have seen a profitability drop to the lowest levels since the survey began in 1998, and business volumes have dropped by -44%, the lowest since 2001.
Interestingly, holiday spending has held steady in the face of a downturn in almost every other service sector. It seems that even in the throes of a severe economic crisis, there’s nothing that can stop Britons from grabbing a little time in the sun. Professional businesses, like law, accountancy and IT have all done well despite (or perhaps because of) the harsher conditions.
From a consumer debt point of view, the downturn isn’t necessarily bad news. It’s a sign that people are tightening their belts and cutting down on non essential purchases. Statistics earlier in the year suggested that people were…