Surge in pub trade boosts economy
The data showed the UK economy grew 0.1% in November 2022, thanks in part to the FIFA 2022 World Cup Tournament helping to boost trade at pubs, bars and restaurants as customers headed to hospitality venues to watch the games.
UKHospitality chief executive Kate Nicholls said: “Today’s GDP figures once again underline the importance of hospitality in driving economic growth and recovery.
“The World Cup provided a significant boost in November, with pubs and bars reporting sales up 30-40% on matchdays.
“This once again shows the power of big sporting events, even in the winter, and the important role our venues play in bringing communities together.
Positive growth
“However, the figures also highlight the impact strike action had on the sector and the cost of lost sales is likely to be set out more starkly in next month’s figures.”
Additionally, figures from cloud technology specialist Purple found footfall during this period had been higher than expected.
Small growth in economy in November - economists had expected it to fall by more than twice that - boosted once again by hospitality and World Cup. Underlining once again the vital role our sector plays in driving recovery and growth. https://t.co/XWDfONuwhe
— Kate Nicholls OBE (@UKHospKate) January 13, 2023
The data from Purple showed UK footfall on Saturday 10 December for England V France was 46% higher compared to England's quarter final match in 2018 and 43% higher compared to England's match against Senegal on Sunday 4th December.
Furthermore, figures for England's match against France were more than 7% higher than Purple's forecast, based on figures from 2021.
However, despite this positive growth, the economy shrank 0.3% in the three months to November, according to ONS.
Survive and thrive
Additionally, the implied GDP deflator increased by an upwardly revised figure of 6.4% in the year to Quarter 3 2022.
This comes as Prime Minister Rishi Sunak last week announced a five-point pledge to grow the economy and tackle inflation this year.
Nicholls added: “While hospitality has yet to recover to pre-Covid levels, in real terms, today’s figures demonstrate the role the sector can play in boosting the economy.
“Times are challenging right now, [but] with the right support and investment the sector can both survive and thrive; delivering long-term economic growth, creating jobs and continuing its tradition of investing in our communities.”
