June saw the output of UK hospitality businesses grow at the fastest rate in nine years, as more consumers took advantage of lockdown-easing, according to the Lloyds Bank UK Recovery Tracker.

The tourism and recreation (63.1) sector recorded its strongest output growth since January 2012.

Prior to April, the sector’s output had fallen every month since August last year.

The sector – which includes pubs, hotels, restaurants, travel agents and leisure facilities – benefited from the release of pent-up demand following another easing of lockdown restrictions across the UK in late May, a rise in bookings for domestic holidays and consumers watching Euro 2020 matches in pubs and fan zones.

Key sectors monitored grew for the third consecutive month in June – but only five reported faster month-on-month growth, down from 11 in May.

The transport sector (51.8 in June versus 63.2 in May), household products (61.2 versus 68.5) and food and drink manufacturing (60.5 versus 67.3) reported the sharpest
slowdowns in the pace of their growth.

A reading above 50 signals output is rising, while a reading below 50 indicates output is contracting.

Transport businesses – which includes airlines and rail operators – experienced a slump in bookings for overseas travel, affected by the government’s traffic light system.

Jeavon Lolay, head of economics and market insight, Lloyds Bank Commercial Banking, said: “While a four week-delay to the final stage of lockdown being lifted in England did little to affect the strong performance of tourism and recreation businesses in June, it will be interesting to see if this week’s lifting of all restrictions will cause footfall in hospitality venues to rise further as many expect.”

Image: Louis Hansel