Latest figures show that the tourism and recreation sector experienced the quickest fall in output of any UK sector last month, with demand falling for a fourth consecutive month as rising inflation forced consumers to cut spending.
Output in the sector, which includes pubs and restaurants, declined at the fasted pace since February 2021, when the UK was in lockdown, according to the Lloyds Bank UK Recovery Tracker.
It reported a tracker score of 36.3 for the sector in September, with any figure below 50 indicating a contraction.
Five of the UK’s 14 sectors, however, reported faster growth last month, with software service providers the highest among the five.
Input cost inflation for businesses also intensified for the first time since May, the tracker showed, driven by rising energy prices.
“While we expect UK inflation to remain stubbornly high in the coming months, there are clear signs of an easing in pipeline cost pressures in our latest UK Sector Tracker report,” said Jeavon Lolay, head of economics and market insight for commercial banking at Lloyds.