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Tourism reports ‘sharpest fall in output’ of any UK sector in September

Economy
Will Payne
20 October 2022

Tourism and recreation experienced the sharpest fall in output of any UK sector in September, according to the latest Lloyds Bank UK Sector Tracker.

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Output in the sector contracted at the fastest pace (36.3) since February 2021, when the UK was last in lockdown.

The drop was caused by demand – represented by new orders – falling for a fourth consecutive month (38.5) as consumers reined-in discretionary spending amid rising inflation.

Overall, five of the 14 UK sectors tracked saw output grow in September (vs three in August), while the same number saw new orders grow (vs three in August).

Elsewhere, the tracker showed that overall input cost inflation for businesses intensified in September for the first time since May (77.4 vs 76.6 in August).